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CBI: Annual core inflation rate accelerates to 7.3%


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BAGHDAD (Babinaoz / Reuters) – A senior official of the Central Bank of Iraq to the annual core inflation accelerated to 7.3 percent in May from 6.1 percent in April, driven by the cost of imported goods and services especially in the health care sector. Qasim said the appearance of the bank’s adviser, “there is little inflation this year, but still under control. I do not think it will exceed the (single digit).”

The Central Bank of Iraq in April that he expected annual inflation to remain in the single digits by the national program of ration, who helped absorb some price increases. And draws most of Iraq’s imports of wheat, rice, cooking for the program, which provides basic food for millions of citizens.

The economy depends heavily on Iraqi oil, which contributes more than 95 percent in revenue. The Central Bureau of Statistics calculates the rate of inflation and the Bank defines core inflation that does not include spending on fuel.

The Executive Chairman of the Iraqi Stock Exchange, Taha Ahmed Abdul Salam said that foreign investment in the stock market jumped this year because the popular uprisings against regimes in the region have made ​​Iraq a more attractive investment alternative.

He added that foreign investors registered net purchases in the first five months of this year, bought shares worth 84 billion Iraqi dinars (72 million dollars).

He said foreign investors sold shares worth ten million dollars since January, after he bought a $ 53 million of the shares in 2010.

Abdel-Salam told Reuters in an interview, “When you see the Arab region now and see what happens you can see the difference between Iraq and the others.

“We have a government .. and foreign companies began to rebuild the country with the Iraqis. And also see the oil companies working … this encourages everyone to invest.”

Iraq is trying to stand on his feet again after decades of war and economic isolation and needs to be invested in almost all sectors under reconstruction efforts.

Iraq has seen protests like other countries in the Middle East and North Africa, but focused on the demand for better basic services and provide more jobs than calling for regime change.

There are 85 companies listed on the Iraqi market for securities, which began work in 2004. The market is a center of private investment outside the oil sector in a country dominated by state companies.

Abdel-Salam said he expected an increase of from 40 to 50 percent in the number of shares traded in the current year as a whole.

He added that foreign ownership of shares in the stock market rose to about 19 ​​percent in 2011 from three percent in 2008.

He pointed out that foreigners, especially Americans and Europeans and the Arab Gulf and the Egyptians are interested primarily in bank stocks, and the hotel sector and the industrial sector.

Abdul Salam said that since January has traded 210 billion shares worth $ 326 million. A volume of 255 billion shares in 2010 worth $ 342 million.

He added: “One of reasons for the high index of the last meeting of last year to now is the demand of foreigners … they buy four times as much selling.

“I do not say that Iraq is not a risk … but the security situation improved. This type of risk acceptable to investors.” The current market value of the Iraqi Stock Exchange, $ 3.2 billion.

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Not going to exceed the single digits?!

That's an awfully bold statement considering we're over halfway through June and the core inflation rate is probably around 8%.

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BAGHDAD (Babinaoz / Reuters) – A senior official of the Central Bank of Iraq to the annual core inflation accelerated to 7.3 percent in May from 6.1 percent in April, driven by the cost of imported goods and services especially in the health care sector. Qasim said the appearance of the bank’s adviser, “there is little inflation this year, but still under control. I do not think it will exceed the (single digit).”

The Central Bank of Iraq in April that he expected annual inflation to remain in the single digits by the national program of ration, who helped absorb some price increases. And draws most of Iraq’s imports of wheat, rice, cooking for the program, which provides basic food for millions of citizens.

The economy depends heavily on Iraqi oil, which contributes more than 95 percent in revenue. The Central Bureau of Statistics calculates the rate of inflation and the Bank defines core inflation that does not include spending on fuel.

The Executive Chairman of the Iraqi Stock Exchange, Taha Ahmed Abdul Salam said that foreign investment in the stock market jumped this year because the popular uprisings against regimes in the region have made ​​Iraq a more attractive investment alternative.

He added that foreign investors registered net purchases in the first five months of this year, bought shares worth 84 billion Iraqi dinars (72 million dollars).

He said foreign investors sold shares worth ten million dollars since January, after he bought a $ 53 million of the shares in 2010.

Abdel-Salam told Reuters in an interview, “When you see the Arab region now and see what happens you can see the difference between Iraq and the others.

“We have a government .. and foreign companies began to rebuild the country with the Iraqis. And also see the oil companies working … this encourages everyone to invest.”

Iraq is trying to stand on his feet again after decades of war and economic isolation and needs to be invested in almost all sectors under reconstruction efforts.

Iraq has seen protests like other countries in the Middle East and North Africa, but focused on the demand for better basic services and provide more jobs than calling for regime change.

There are 85 companies listed on the Iraqi market for securities, which began work in 2004. The market is a center of private investment outside the oil sector in a country dominated by state companies.

Abdel-Salam said he expected an increase of from 40 to 50 percent in the number of shares traded in the current year as a whole.

He added that foreign ownership of shares in the stock market rose to about 19 ​​percent in 2011 from three percent in 2008.

He pointed out that foreigners, especially Americans and Europeans and the Arab Gulf and the Egyptians are interested primarily in bank stocks, and the hotel sector and the industrial sector.

Abdul Salam said that since January has traded 210 billion shares worth $ 326 million. A volume of 255 billion shares in 2010 worth $ 342 million.

He added: “One of reasons for the high index of the last meeting of last year to now is the demand of foreigners … they buy four times as much selling.

“I do not say that Iraq is not a risk … but the security situation improved. This type of risk acceptable to investors.” The current market value of the Iraqi Stock Exchange, $ 3.2 billion.

LINK

Not going to exceed the single digits?!

That's an awfully bold statement considering we're over halfway through June and the core inflation rate is probably around 8%.

'Z',

Good find and post!

If inflation can remain controlled to less than double digits, this will be a very good sign for the Iraqi economy and investments.

Thank you,

GG

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Here's the updated link...

CORRECTED OFFICIAL-IRAQ'S CORE INFLATION 6.3 PCT (NOT 7.3 PCT) IN MAY VS 6.1 PCT IN APRIL-CENBANK

(Corrects to show inflation 6.3 pct, not 7.3 pct)

BAGHDAD, June 19 (Reuters) - Iraq's core annual inflation rose to 6.3 percent in May from 6.1 percent in April, driven by cost of imported goods and services, especially health care, a senior central bank official told Reuters on Sunday.

http://www.reuters.com/article/2011/06/19/iraq-economy-inflation-idUSLDE75I02X20110619

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They want that. They want this inflation as a reason to LOP it. I hope I'm wrong, but I hope they don't take this reason for LOPPING.

Go RV as usual!!

Michel

Inflation at 7.3% is no reason to LOP ..... it would need to be at least double that figure if not more !!

anyway it has been reset down to 6.3% so only a small increase.

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