Baghdad – Iraq inflation steadies in early 2026 as price pressures remain controlled. The Ministry of Planning reported stable living costs compared with the same month last year. Iraq inflation steadies despite small monthly changes in consumer prices.
According to official data, prices increased by 0.9 percent compared with the previous month. This monthly rise reflects a slight movement in market costs. However, the annual comparison shows stable overall conditions.
The Central Statistical Organization and Geographic Information Systems department compiled the latest figures. Ministry spokesperson Abdul Zahra Al-Hindawi presented the updated data. He confirmed that inflation trends shifted throughout the previous year.
During the first five months of 2025, prices moved upward steadily. Annual inflation reached its highest point in January 2025. At that time, the annual rate recorded 2.3 percent. After that peak, inflation gradually declined.
From June onward, annual inflation entered negative territory. Prices then continued to decrease through the remaining months of the year. As a result, markets experienced easing pressure toward the year’s end.
Furthermore, broader historical data show a downward inflation trend in recent years. Iraq recorded an annual inflation rate of 5 percent in 2022. The rate then dropped to 4.4 percent in 2023. In 2024, inflation fell further to 2.6 percent.
This steady decline highlights improved price stability across the economy. Iraq inflation steadies as policymakers monitor supply chains and consumer demand. Stable oil revenues also support fiscal balance and currency stability.
Economists note that moderate inflation helps protect purchasing power. When inflation remains low, families manage household budgets more effectively. Businesses also benefit from predictable pricing conditions.
Moreover, controlled inflation strengthens investor confidence. Investors often prefer markets with stable economic indicators. Therefore, Iraq’s steady inflation trend may encourage further economic activity.
Despite this stability, officials continue to track monthly price movements carefully. Even small increases, such as the 0.9 percent monthly rise, require close monitoring. Authorities aim to prevent sudden spikes in essential goods.
Global economic conditions also influence domestic prices. Changes in commodity markets can affect food and energy costs. However, Iraq inflation steadies because local authorities maintain careful oversight.
The downward trend from 5 percent in 2022 to 2.6 percent in 2024 signals structural improvement. Policymakers attribute this progress to balanced fiscal measures and controlled spending.
In conclusion, Iraq inflation steadies in early 2026 with a modest 0.9 percent monthly rise. Annual trends show clear moderation over the past three years. If authorities maintain current policies, inflation may remain stable throughout the year.