The inflation indicators show more stability in July than the previous month of June after the slight rise of 0.3%. When it was announced by CBI, the annual inflation basis in July was 140.7%.
The Information Office of the Ministry of Planning has provided a statement and has explained that due to the reduction in the prices of products like vegetables, fruits, foods and beverage are the reason behind this stability.
The statement also added that, in comparison with the inflation rate of July last year, this year’s results show a rise of 5.7% and this is the result of the hike in the price of Department of Housing. This is the condition of the whole country. The rent of homes has increased 10% and the ultimate amount is 13%.
According to the statement, the inflation report for the month of July in the year 2012 has been created by the Central Bureau of Statistics. This report has been prepared depending on the collected filed data about the price of the products and the services from the basket of the customers which has been taken in a chosen few outlets all over Iraq. This data shows the indicator indices of consumer prices in Iraq is at a level and then it also shows that the general index is 138.1% in July, 2012. It is up 0.3% from the month before and in comparison to July 2011, it is up by 5.7%.
This report stated that the there is a reduction in the price of the products by Department of Food and also of the non-alcoholic beverages; the rate of the reduction is 0.7% when compared to the month of June. The price is 0.7% low in the central region, and there are also reductions like 1.0% in the south, but this price has increased by 0.1% in the Kurdistan. The reason behind this reduction in the prices is, the low price of fruits and vegetables and in comparison with that of July 2011, the prices has increased by 4.9%.
According to a report provided by the Department of Alcoholic Beverages, the price of tobacco and beverages has increased by 0.5% in comparison to the month of June. The reason behind this rise is the price hike of 3.1%in Kurdistan and 0.2% in the south region, but the situation is completely stable in the central region. Compared to the month of July, 2011the price has increased for 2.7%.
The indices of district level consumer price indicator shows that the price n the Kurdistan region was in July, 2012 has increased by 0.7% in comparison to June of this year. Increased price of non-alcoholic beverages and food is the main reason behind this condition. The amount of increase is as follows, clothing and footwear 0.1%, education 6.2%, alcoholic beverages and tobacco 3.1%, housing price 2.0% and various goods and services price 0.1%.
Recorded price in the south region for July, 2012 in comparison with last month has gone up by 0.3% and the reason behind this is the increase in the price of tobacco and alcoholic beverages (0.2%), footwear and clothing (0.1%), housing (1.4%), household and commercial equipment and maintenance (0.1%) and education (3.5%) and such products in this region.
According to the Central Bank of Iraq, annual amount basis of inflation will rise up to 140.7% depending upon the calculation done in July because of the price hike in various sectors like food, housing, electricity, but they have also stated that this is quite natural and they are in control of the situation.
Mohammed Saleh, deputy governor of the Central Bank of Iraq in his statement has told that the annual basis of inflation has increased up to 140.7% in July and in comparison to that the annual basis of inflation in the month of July was 139.6%. So, the percentage has grown up to 0.8%. He has also told that the inflation rate has been steadily increasing from July, 2011 and now the rate has risen up to 5.9%.
According to the statement of Saleh, the Central Bank has barred a few inflation indicators like the petroleum products apart from gas and oil from the Department of Fuel and vegetables and fruits from the Department of Food and also the non-alcoholic beverages, because the bank thinks the prices of these products are unstable and fickle. He has also added that the final picture of inflation is known to be spending pressure and continuing pressure universally.
Saleh has also added that the main reasons behind high inflation is the pressure of the price on dollar in the sectors and services such as electricity, food, industrial products, housing industry has gone up to 35% in the year 2005. He has stressed that, encouragement in the housing and land distribution Sakhwan is one of the main reasons behind this high inflation is Iraq.
According to Saleh, inflation is completely under control and it will remain so until it does not go up at least two decimal places. He has also added that the bank has implemented certain strategies like use of reference interest rate and such things to measure the inflation and reduce it to two decimal places.
It also means that inflation is basically the change in the percentage in the calculation of the index of consumer prices without taking oil and gas into consideration. The departments of Housing, Food and Non-alcoholic drinks, certain vegetables and fruits are included in the calculation. This is the announcement by Ministry of planning and on 18th August, according to the current indicators annual inflation percentage for July 2012 has increased by 5.7% and the monthly inflations has increased up to 0.3%.