Central Bank announces increase the base annual inflation in April to 6.7%

Tuesday 22 May 2012

Sumerian News / Baghdad Central Bank of Iraq, Tuesday, about rising inflation annual basis for the month of April, to 6.7 per cent, as pointed out that the housing sector and fluctuations in the exchange rate has an impact on raising the rate of inflation, he stressed that this increase is still “not worrying . ” said Deputy Governor of the Bank of the appearance of Mohammed Saleh in an interview for “Alsumaria News”, “annual inflation basis rose in the month of April, to 6.7% compared with the annual inflation basis for the month of March, who scored 6.2%, up by 1.0%.”Saleh added “There are two important factors impact on raising inflation in Iraq are the housing sector due to rising rents housing and electricity, in addition to the fluctuations that occurred in the exchange rate of the Iraqi dinar in recent times.” Saleh pointed out that “the goal of the Bank President is to reduce prices and to address inflation,” noting that “the bank seeks to raise the value of Iraqi dinar exchange rate in proportion to the surplus in the balance of payments of Iraq and especially the current account that a surplus of which 8 to 10% of the GDP.” Saleh pointed out that “the surplus in the balance of payments to him from the economic power of the financial impact on the high bank reserves to 18 percent, “pointing out that” the economic power of Iraq’s financial must be reflected on the strength of the Iraqi dinar, which in turn will be able to reduce inflation. ” The Deputy Governor of Central Bank of Iraq that “this rise in inflation is still worrisome,” , asserting that “monetary policy is able to accommodate inflation and that he would intervene strongly to curb inflation in the moments when what he found up to the stages of worry about stability.” means inflation is essentially a percentage change in the index of consumer prices calculated after excluding petroleum products (oil, gas ) within the Department of Housing and the two sets of fruits and vegetables sub within the Department of Food and non-alcoholic beverages. The Ministry of Planning on 12 of May, the current rise in the annual inflation index for the month of April, in Iraq, to 8.7 percent, and attributed the reason because of the high prices of food and non-alcoholic beverages. The Bank Iraqi Central, with headquarters in Baghdad and has four branches in Basra and Sulaymaniyah, Erbil and Mosul, he founded the bank an independent Iraqi under the law of the Central Bank of Iraq issued on March 6, 2004, and be responsible for maintaining price stability and the implementation of monetary policy, including exchange rate policies and the management of foreign reserves and the issuance of and currency management, as well as the organization of the banking sector.