Trade Arabia reports that Iraq’s core annual inflation rate increased to 7.1 per cent in July, up from 6.4 per cent in June.
The Deputy Governor of Iraq’s central bank, Mudher Kasim, told Reuters that the increase was driven mainly by higher housing rental prices and an increase in the cost of building materials; the slow response by government in addressing Iraq’s chronic housing shortage had continued to push prices up.
“Sixty per cent of Baghdad families do not own houses,” Kasim said.
The country faces an acute shortage of houses after years of war and sanctions and needs between two and three million new homes to accommodate its growing population.
A South Korean firm said on Saturday that it will build a 100,000-unit housing development south of Baghdad.
(Sources: Reuters, Trade Arabia, AKnews)