Iraqi Inflation Up Again in May

Iraq’s core annual inflation rose to 6.3 percent in May from 6.1 percent in April, a senior official at the Central Bank of Iraq told Reuters on Sunday.

The agency reports that the figure is driven by the cost of imported goods and services, especially healthcare.

Inflation had previously risen from 5.5% in February to 5.7% in March due rising electricity prices.

(Sources: Reuters, AKnews)

3 Responses to Iraqi Inflation Up Again in May

  1. DAVID YODER June 23, 2011 at 7:58 am #

    Dear Sirs: I see that Iraq is doing a lot of business ventures with world countries. My question is, with the Iraqi dinar valued at 1270 how does Iraq pay it’s bills? thank you for your reply. Sincerely, David Yoder

  2. Stew June 23, 2011 at 8:38 am #

    This is “dinar economist” thinking. Simply RV your currency and make your country wealthy.
    David Yoder… Iraq sells 2.5 million barrels of oil every day for about $100 a barrel.
    That comes out to $91 billion a year from oil sales. That’s what they pay their bills with.

  3. Stew June 23, 2011 at 8:47 am #

    The dinar is going to lop 3 zeros.
    They currently have a M2 of 60 Trillion dinar. 28 trillion of that is cash currency in circulation. At the current rate of .00085 that’s an M2 of $51 billion and currency in circ of $24 billion.
    Once they complete the redenomination and issue a new currency they will have a M2 of 60 billion dinar with 28 billion in circulation. The new currency will be worth 85 cents. Giving them the exact same M2 of $51 billion and currency in circ of $24 billion.

    So with a dinar worth 85 cents the “dinar economist” should keep screaming that they can’t pay their bills and that the dinar needs to RV to $850 per dinar at any time.
    As silly as that sounds… that’s exactly what they are claiming now.