Declining Inflation Rate in Iraq, Iraq continues to see improvements in its economic indicators. The Ministry of Planning reported that both monthly and annual inflation rates dropped in June. This news brings a sign of relief to many Iraqis who face daily price challenges.
The ministry confirmed a 1.2 percent drop in monthly inflation compared to May. Key marketplaces across Iraqi provinces recorded this decline. The government linked this improvement to better economic management and stable market activity.
At the same time, the annual inflation rate in Iraq also decreased. The ministry stated that inflation dropped by 0.6 percent compared to the same month last year. These changes reflect growing confidence in the country’s economic direction.
The drop in inflation shows how Iraq’s economy continues to recover. The Ministry of Planning credited long-term planning for this progress. They also noted that lower import costs helped reduce prices in food and energy sectors.
The Central Bank of Iraq also reported a decrease in inflation earlier this year. It confirmed that the inflation rate dropped from four percent to 2.8 percent between late 2023 and early 2024. This steady drop gives officials hope for continued progress.
According to international forecasts, inflation in Iraq will likely stay low in the near future. A recent study from the International Monetary Fund said that Iraq’s inflation rate may slightly decline in 2025. The IMF expects inflation to fall to 2.5 percent in 2025.
The IMF also predicted a slight increase in inflation afterward. It estimated the inflation rate will rise to 2.7 percent in 2026 and reach three percent by 2030. These figures suggest that Iraq may face mild inflation in the coming years, though still within healthy levels.
The declining inflation rate in Iraq signals growing economic strength. It also means that people may feel less pressure from rising prices. While challenges remain, officials believe Iraq is on the right path.
This trend helps both citizens and investors. As inflation stabilizes, buying power improves, and markets respond positively. The continued declining inflation rate in Iraq offers hope for future economic growth.
The government plans to monitor inflation closely. Officials will use these reports to shape future policy and support further development.