In­fla­tion rate falls in Kur­dis­tan

Plan­ning Min­istry stats show 2012 in­fla­tion were 7%

The Kurdish Globe - - EDITORIAL -

lowances as well as the in­flow of money into the Re­gion’s mar­kets were not well planned and con­trolled, it would have well led to sig­nif­i­cant in­creases in the in­fla­tion rate.

Min­istry’s new

statis­tics

Min­is­ter Sindi told par­lia­ment mem­bers that the con­sumer price in­dex they use for cal­cu­lat­ing the in­fla­tion rate is con­sti­tuted from 320 ba­sic items, the prices of which are con­trolled on a monthly ba­sis. This, ac­cord­ing to Min­is­ter Sindi, has wit­nessed a 7% in­crease dur­ing 2012, which was slightly less than the in­crease rate of 2011.

It is gen­er­ally ac­cepted that the first in­fla­tion tar­get of any government is prevent­ing in­crease, which the KRG has ap­par­ently been suc­cess­ful in, and then try­ing to push the in­fla­tion down. The slight fall in in­fla­tion rate of Kur­dis­tan in­di­cates that KRG’s poli­cies have been suc­cess­ful in chang­ing the di­rec­tion down­wards.

The Min­is­ter high­lighted the fact that the in­fla­tion rate of Kur­dis­tan is now lower than that of Turkey, which is gen­er­ally ac­cepted as one of the most sta­ble

economies in the re­gion.

In­fla­tion – fac­tors

and so­lu­tions

While causes of in­fla­tion are many in­clud­ing busi­ness boom, raise in salaries and other sources of in­come, in­flow of money into an econ­omy, but as Dr. Sindi re­it­er­ated, con­trol­ling and solv­ing in­fla­tion is a mon­e­tary pol­icy- re­lated is­sue and this is not in the con­trol of the KRG, but rather the cen­tral government can do that.

The min­is­ter ex­plained that the cen­tral government of Iraq owns US$62 bil­lion in the bank, which gives the government suf­fi­cient power to use this money wisely to drive its mon­e­tary pol­icy and con­trol in­fla­tion rate in the whole coun­try and in Kur­dis­tan Re­gion

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