Iraq’s inflation rate increased by 0.8% in August, reversing a slight 0.1% decline recorded in July, the Ministry of Planning reported on Tuesday.
Spokesperson Abdul Zahra al-Hindawi explained that the annual inflation rate for August 2025 fell by 1% compared with the same month last year. However, the monthly increase reflects rising prices in key sectors that directly affect household spending.
Food and non-alcoholic beverages saw the largest rise, climbing 1.7% in August. Housing costs rose modestly by 0.1%, while miscellaneous goods and services, which include items such as personal care and household products, increased by 0.6%. Together, these three categories drove the overall monthly inflation rate upward.
In contrast, four other categories recorded price declines, while five categories remained unchanged from July levels. The combination of rising and falling prices helped balance the inflationary pressures across Iraq’s economy.
Al-Hindawi highlighted that although the monthly rise may affect household budgets, the year-on-year decline indicates that inflation remains relatively controlled. Analysts noted that the increase in food prices reflects seasonal trends, supply chain adjustments, and fluctuations in market demand, particularly in Iraq’s major urban areas.
The Ministry of Planning continues to monitor price trends closely and is working to provide guidance to policymakers to ensure economic stability. Officials emphasized that keeping inflation in check is vital for maintaining consumer confidence and protecting purchasing power.
Iraq’s inflation remains heavily dependent on oil revenue, but domestic price movements directly influence everyday living costs. Policymakers are expected to adopt measures that balance inflation control with continued economic growth while ensuring access to essential goods and services.