Annual inflation in Iraq has reached 5.7 percent, CBI discussed re-evaluation of dinar as of last year : Tuesday, August 21, 2012

Annual inflation index rose in Iraq rose 5.7 percent after rising rents and the cost of living and services.

Said the spokesman of the Ministry of Planning and Development Cooperation of Iraq Abdul-Zahra al-Hindawi, said that «indicators annual inflation for the period of the month in July 2011 until the same month this year rose 5.7 percent for reasons of higher prices of goods and services, which include food, rent, transportation, communications, health and education» .

Hindawi said «Central Bureau of Statistics of the Ministry completed the inflation report for the month of July 2012 on the basis of field data collection on the prices of goods and services components of the consumer basket of selected sample of outlets in all governorates of Iraq.

Hindawi between the indicators of inflation for the month of July this year other is increased compared to the previous month of June by 0.3 percent.

He said Iraqi Finance Minister Rafie al-Issawi said that Iraq was seeking to keep inflation at five percent in 2012 with the support of the policies of the Central Bank to control the rising prices, and that he hoped to re-evaluate the Iraqi dinar by 2013.

Issawi told Reuters he hoped to control inflation again at about five percent in 2012 by some of the central bank’s policies.

The annual inflation rate accelerated primary in Iraq to 7.1 percent in July from 6.4 percent in June, driven mainly by rising house rents.

Issawi said he did not believe that inflation will rise, adding that it has increased in the past few months to more than six percent, though the central bank tried to change its policies to control it again.

An official at the central bank said in June that it is not expected to exceed the annual inflation basic seven percent in 2011, because the economy has remained relatively stable with the stability of the flow of goods and the absence of any unexpected expenses governmental.

In August, Iraq declared that it intends to re-evaluation of the dinar by deleting three zeros from the nominal value to facilitate financial transactions.

Issawi said the central bank was prepared his study for submission to the government and that he hoped to complete it by 2013.

The CBI began discussing re-evaluation of the dinar last year in order to facilitate financial transactions. Still, many transactions in Iraq are in cash because of the development of the banking system.

The Iraqi dinar is trading in the auction at a fixed price at 1170 dinars to the dollar.

Issawi also said he expected that the level of unemployment ranges between 15 and 23 percent this year. :