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Iraq Inflation Rate All Time High

Hopefully in the next few months Iraq inflation will be at a managable level. Maybe it will happened after the new new Iraq Dinar Banknotes.


May 26 2006

Bassem Antoine, Deputy Chairman of Iraq’s Businessmen Association, said that inflation in Iraq had reached 107 percent due to the fuel crisis and the deteriorating security situation.

The draconian inflation rate, according to Antoine, was calculates in accordance with the costs of the imported consumer products and the saved costs if produced locally.

“The huge rate has also been the direct result of investing in non-productive sectors,” Antoine noted.

Comments

What I worry about is not the current inflation rate. But the rate AFTER the currency is exchanged. If a reprint does occur and inflation remains high...all those who have invested in the Iraqi economy stand to lose everything. Inflation must be controlled.

what makes someone so sure that the proposed "reprint" will even be initiated when the CBI has stated the "zero-lopping proposal" does not go far enough?

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