(MENAFN) The escalation in commodity prices not only impacts global markets but also exacerbates the challenges faced by Iraqi citizens in preparation for the upcoming holy month of Ramadan. Despite government efforts to stabilize the economy and control inflation, Iraqi citizens continue to grapple with the repercussions of the dinar's depreciation against the US dollar. In the parallel market, the exchange rate of the dollar has soared, ranging between 151 and 153 thousand dinars, significantly higher than the official rate of 132 thousand dinars for 100 dollars.

Data from the Ministry of Planning reveals a staggering 18 percent increase in the prices of goods and services in Iraq over the past four years. Particularly concerning is the surge in prices of essential commodities, with basic goods experiencing an average increase of 30 percent. Meat prices have skyrocketed by 36 percent compared to 2020, with a kilo now priced at 25 thousand dinars. Similarly, fish and dairy prices have surged by 38 percent and 30 percent, respectively, further straining household budgets and exacerbating financial hardships for Iraqi families.

Despite efforts to mitigate inflation, the Central Bank of Iraq reports a decrease in inflation rates from 7.5 percent at the beginning of last year to 4 percent by the end of 2023. However, these figures offer little solace to Iraqi citizens grappling with the day-to-day impact of soaring prices. The economic challenges are further compounded by projections of declining GDP growth. The International Monetary Fund anticipates a downturn in Iraq's GDP growth for 2023 and 2024, attributed to a decline in oil production in the country, with growth expected to plateau at 5 percent.

Similarly, the World Bank forecasts a 1.1 percent decline in Iraq's GDP growth for 2023, following a modest increase of 1.6 percent in 2021 and a significant 7 percent growth in 2022. These projections underscore the pressing need for comprehensive economic reforms and strategies to address the underlying structural issues contributing to Iraq's economic vulnerabilities. As citizens brace themselves for the challenges ahead, policymakers face mounting pressure to implement effective measures to alleviate the burden on households and foster sustainable economic growth in the long term.

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