Iraq's inflation rate soars to 16 percent in April, blamed on rising worldwide prices

[Robbien]

Source: Associated Press

Rising prices of food, energy and other commodities worldwide pushed up Iraq's inflation rate to 16 percent in April, compared to 11 percent at the beginning of this year, the country's central bank said Sunday.

Central Bank of Iraq governor Sinan al-Shibibi said the bank would continue its monetary policy focused on absorbing the inflation by strengthening the Iraqi dinar against the U.S. dollar and keeping interest rates at 17 percent.

"The interest rate is high, I admit that, and that could lead to the private banks sending their money to the central bank rather than other fields," al-Shibibi told a press conference in Baghdad's fortified Green Zone. "But it serves the economy by reducing inflation."

In its monthly report, the Iraqi Planning Ministry said April saw increases in prices for the most important goods and services, which make up more than two-thirds of a family's expenditures.

Food prices rose the most, with a 13.6 percent increase, and medical services and drugs went up 1.3 percent. The price of furniture in Iraq rose 0.8 percent and other essential goods and services inched up 0.6 percent.

Read more: http://www.iht.com/articles/ap/2008/05/25/business/ME-FIN-Iraq-Inflation.php

[Arctic Dave]

1. Ouch! Add to that massive unemployment and you have

a very poisonous coctail. Some people wonder why Sadr is so popular, imagine if this was your situation and a local "troublemaker" were to offer you relief. Would you take it?

[Dr.Phool]

2. Damn! Almost as high as it really is here.

Why do they get real stats, and we get doctored numbers?

[Jemmons]

3. No, no, no - they are just confused and have started counting oil

and food prices. Done properly (counting only air-freshener, fast food and DVD-players) inflation estimates will be around 2,3 %.

[ohio2007]

4. Zimbabwe inflation now over 1 million percent

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3318843
blamed on failed govt policies

Iran's annual inflation rate tops 24%


http://www.presstv.ir/detail.aspx?id=54275§ionid=351020102
blamed on "spies"




Higher Inflation Keeps Upward Pressure on Domestic Rates

Official inflation figures vary across countries of the region, ranging from an estimated annual rate of 2.2 percent in the first nine months of the year in Saudi Arabia, to 2.8 percent in Bahrain, 3.2 percent in Kuwait, 7 percent in the UAE, 6.3 percent in Jordan and 9.6 percent in Egypt. While domestic fuel prices did not increase in Saudi Arabia, Kuwait and Qatar, they rose by 30 percent in UAE and Jordan
snip

Price indices with unrealistic and/or distorted weights do not reflect “true” inflation. A number of informal indicators suggest that the actual rate of inflation may be much higher than indicated by official figures.


http://www.arabnews.com/?page=6§ion=0&article=88768&d=13&m=11&y=2006

Saudi state controlled economy is a secret so who knows if their own citizens are told the real #'s.

but in the longrun, 16% is a tad better then 1,000,000 % a month in some parts of the third world.
jmo

[tabasco]

5. "based on prices of a basket of basic foodstuffs."

Take your lying ass over to Iraq if you think it's so swell.

[Doctor Cynic]

6. So what was the IED inflation rate?

:shrug:

[ChairmanAgnostic]

7. at least they include food and energy prices.

unlike the bush economist assholes.