An adviser from the Iraqi Central Bank (ICB) said on Thursday that inflation will continue to rise if the Iraqi economy continues its dependence on crude oil revenues.
Muzher Mohammed Saleh told AKnews that the inflation will continue increasing unless the agricultural and industrial sectors are stimulated, in addition to supporting local production.
“The monetary policy in the country will continue to rise if the local production continues to be unable to compete with imported materials so that the supply will match with the demand for the goods.”
A number of economists have expressed fears about the continuing high rates of inflation in Iraq. Core inflation rose to 5.5% in February.
The main task of the ICB is to maintain price stability and the implementation of monetary policy, including exchange rate policies, managing the reserves of foreign currency, issuance and management of currency as well as regulating the banking sector.