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%)