An adviser to the Iraqi Central Bank said on Sunday that is expected to remain the annual inflation rate to Iraq without the ten percent in 2011 thanks to the government ration program, which accounts for some of the increases in food prices.
The rising cost of food, energy, consumer prices to rise to the level of the world, including in Iraq, which imported wheat and rice, but government spending on a program of ration cards, which covers 60 percent of Iraqis have contributed to the alleviation of prices.
Qasim said the appearance of bank adviser said in an interview with Reuters that the ration program of food still exists and it absorbs part of the increase in food prices, adding that the central bank has always measures to combat inflation.
The annual core inflation has risen in Iraq, to 5.5 percent in February from 5.3 percent in January, which is attributed mainly to higher electricity costs and rents and housing. Unpublished data bank after the month of March.
Kassem said he expected to keep interest rate of six percent of Iraq stable, but said the bank has been following the situation closely as it wants to keep interest rates above the rate of core inflation.
The last time Iraq had cut interest rates in April, where the reduction of 100 basis points to six percent. And proved to the bank rate of exchange at 1170 IQD to the dollar.
Dominated by the oil sector on the Iraqi economy, which did not recover quickly after decades of war, sanctions and the sector contributes more than 95 percent in government revenues.
Core inflation does not include the cost of fuel, according to the definition of the central bank.