Looks like inflation is still rising...
Anbuge: income must be increased to meet the inflation .. And resolving the economic problems
Posted: January 11, 2012 in Iraqi Dinar/Politics, Top Headlines
Tags: Consumer basket, December 2010, December 2011, Economy of Iraq, Inflation, Iraq, Iraqi Kurdistan, kurdistan
Warned the specialists in the economic risks of continued high rates of inflation, confirming that the increase in prices and the high cost of services are factors that can adversely affect many of the economic gains achieved in recent times, as mentioned Advisor to the Prime Minister for Economic Affairs that inflation in Iraq due to structural reasons, indicating that inflation will accumulate during the times ahead by not finding radical solutions to the suffering of the Iraqi economy in general, especially unemployment and poverty, which he said the most significant factors that could that lead to a what he called (the dimension is not visible in inflation), which result from reduced purchasing power of individuals and the high cost of living.
The Central Bureau of Statistics of the Ministry of Planning showed during his annual inflation for 2011 past by 6 percent compared with the previous year 2010. He attributed the statement that got the (morning), a copy of the reasons for high inflation to rising prices, Department of Housing during the year, a rate (12 percent) as well as higher wages for electricity by (100 percent) after the application of new rates, indicating that the Directorate of records in the Central Bureau of Statistics completed Inflation Report for the month of December 2011 which was prepared on the basis of data collection in the field “on the prices of goods and services components of the consumer basket of selected sample of outlets in all of Iraq’s provinces have adopted the base year 2007, and showed the results, indicators indices of consumer prices at the level of Iraq, where total index of consumer prices (135.6 percent) in the month of December 2011, recording an increase rate of 0.9 percent for Alshahralve preceded by a rate of 6 percent compared with the month of December 2010.
He attributed the economic advisor to Prime Minister Dr. Abdul Hussein Al-Anbuge Speaking (morning) the reasons for high rates of inflation to change the consumption pattern of the individual in Iraq and the increasing rates of population growth of 3 percent as well as increased funds allocated to consumption, confirming that these factors have created a kind of high demand on goods and services offset a lack of local production system, who said he was unable to meet the increased demand and therefore high rates of inflation.
He Anbuge the apparent weakness suffered by the production in Iraq has led to a large rise in imports of foreign goods and services in order to fill the void experienced by arena domestic production and this, according to Anbuge Born a different kind of high prices caused by poor process of importation and the large number of transactions logistics of the importer. The long wait you spend for goods and materials imported into the ports and warehouses as well as delay in the offices of inspection and quality control at the border gates as well as other costs that are now in the Iraqi trader borne by those complications, which reflected negatively on the high value of materials and therefore affected by the consumer so high and increasing rates of inflation.
Counsel indicated the presence of other risks that could reflect negatively on the reality of development in Iraq due to high rates of inflation, confirming the presence of what he called the dimension of (III) of unemployment and deflation and the relationship of this dimension of inflation, he said, when the unemployment solid, stable and accumulated for long periods will lead to lower incomes distributed the elements of production, and those at low income, it will cause low purchasing capacity of people, and this is visible in the post-inflation can affect the purchasing power of incomes and thus lower their real income, and all this caused by rising prices and rising inflation.
He denied Anbuge that inflation in Iraq, cash only, stressing that there is inflation, real cost caused by a decline in services and inadequate infrastructure. Called Anbuge to increase the incomes of people step can reduce the high rates of inflation, indicating that the high prices if it coincides with high incomes people, there will be no effects of inflation, pointing out that this equation will keep the standard of living of the people as the occurrence of effects due to high prices, Zakir it is wrong to look at inflation in terms of rising prices only, but must look to the size of the income earned by, saying that, according to the equation will be the real indicator of inflation is what is happening down by the people of goods and services admitted.
According to a Central Bureau of Statistics, the prices of housing rose during Alshahralhala rate of 0.3 percent compared to the previous month, due to high housing prices in the Kurdistan region by 1.7 percent in the central region at 0.1 percent, while settled in the South. He confirmed that the prices of this section have risen by 11.9 percent compared to price levels in the month of December 2010 due to rising rents Alldoralexanah rate of 10.4 percent, as well as a result of higher electricity prices wages by 100 percent as a result of the application of new rates.
The statement noted that the sub-group of the fuel (gasoline, oil and gas) have seen their prices rise during the month of December 2011 by 0.7 percent compared to the previous month due to higher prices in the region of Kurdistan, a rate of 1.9 percent in the central region by 0.4 percent in the South by 0.1 percent. He explained that the prices of this group registered an increase rate of 2.6 percent in 2011 compared to prices in December 2010.
The statement said that indicators indices of consumer prices at the district level, recorded in the Kurdistan region in the month of December 2011 compared to the previous month increased by 1.2 percent resulted mainly from a rise in prices of food and non-alcoholic beverages at a rate 2.8 percent, and prices of clothing and footwear by 1.1 percent and housing by 1.7 percent, health by 0.1 percent, and transport rate of 0.3 percent, recreation and culture rate of 0.3 percent, education at 0.8 percent, and restaurants by 1.8 percent, either in the center recorded price according to the statement in the month of December 2011 compared to the previous month increased by 1.0 percent resulted mainly from the increase in prices of food and non-alcoholic beverages by 2.3 percent, alcoholic beverages and tobacco by 0.1 percent, clothing and footwear by 2.1 percent, and all of the housing and health by 0.1 percent, education at 2.7 percent, and restaurants by 0.3 percent, either in the South recorded price according to the statement also in the month of December 2011 compared to the previous month increased by 0.6 percent resulting mainly from higher prices for food and non-alcoholic beverages at a rate of 1.8 percent, clothing and footwear by 0.4 percent, and equipment, household equipment and maintenance by 0.2 percent, and health at 0.3 percent, and transport rate of 0.3 percent, and education by 1.2 percent, and restaurants by 0.5 percent.
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