Increase in inflation in the event of the inability of monetary policy on the devaluation of the dollar
Date: Saturday, 21-04-2012
Baghdad (newsletter) … Economy and Investment Committee member predicted Parliamentary Deputy/National Alliance winning increased rates of Amer inflation in the country during the coming period in the event of the inability of monetary policy to devalue the US dollar to Iraqi dinar.
Insitute (News Agency news) on Saturday: the continued rise in the US dollar against the Iraqi dinar without appropriate solutions and necessary action by the Central Bank will lead to significant economic problems in the country, including high rates of inflation index in the local market significantly over the next period.
He added: the parliamentary Economic Committee held a meeting with the Deputy Governor of the Central Bank and on increasing the value of the dollar during this period and discuss its implications for the Iraqi economy through increased inflation index, pledged to develop sound and appropriate steps to reduce the value of the dollar and low inflation rates in the country, the fact that the Central Bank is the sole responsible for monetary policy in the country.
Fayez said: the main reason for high inflation in the past year due to the non-application of the customs tariff law, which halted the domestic production and making the consumer depend on import external articles, which violated the balance of import and export commodity, pointing out that the increase in the dollar also contributed to the current time by increasing inflation.
The planning Ministry have revealed high indicators of inflation during the March past rate (1.7%) Compared to the previous month, while annual inflation index for the period from March 2011 until March 2012 markedly arrived (8, 3), noting: the reasons for the high quality indicators of inflation monthly, yearly vegetable prices which led to higher prices for food section and non-alcoholic beverages by (13.2%) Compared to prices in March last year reflected on the 2011 inflation indices around the year in Iraq
The findings of the report showed that the index of consumer prices stood at (140.8%) In March 2012 registered a rise of 1.7% for the month preceding rate rate of 8.3% compared to March 2011, either in indicators of consumer price indices, prices were recorded in the region of Kurdistan in March 2012 compared with the previous month, a rise of 0.8% was caused mainly by rising prices of food and non-alcoholic beverages at the rate of 3.9%, prices of household furnishings and equipment and maintenance at a rate of 0.1%, transport costs at the rate of 0.1%, prices of restaurants rate (1.3%)