Shafaq News- Baghdad

Food prices have risen by 10% in Basra and 6.5% in Baghdad and Erbil, economist Manar Al-Obaidi reported, while Iraq’s Trade Ministry said many increases blamed on the higher dollar exchange rate were unjustified.

Al-Obaidi, head of the Iraq Future Foundation for Economic Studies and Consultations, cited World Food Programme data covering 25 essential commodities. He noted that the official dollar exchange rate was changed to 1,520 Iraqi dinars in early November, while the parallel market rate climbed 7%, from around 1,565 to 1,675 dinars, leaving a gap of roughly 10% between the two rates.

Basra Leads the Surge

Basra recorded the sharpest increases, with vegetable oil rising from 2,500 to 3,500 dinars, potatoes climbing 68%, and onion prices doubling. Cheese increased by 25%, rice by 18%, and chickpeas by 10%.

In Erbil, sugar rose from 1,050 to 1,500 dinars, while bulgur increased by 35%, rice by 31%, and powdered milk by 22%. Potatoes and onions climbed 50% and 33%, respectively.

Baghdad recorded a 45% rise in onion prices and an 18% increase in powdered milk. Beans climbed 7%, while rice, vegetable oil, and potatoes each rose 6%. The overall increase in the capital came over six weeks, following a period when dollar fluctuations had little visible effect on food prices.

Across all three cities, bread, flour, chicken, eggs, and red meat remained stable, while dates and fish became cheaper.

Traders may have raised prices on existing stock in anticipation of higher import costs, Al-Obaidi said, warning that further increases could follow as cheaper inventories run out and new shipments arrive. Their scale would depend on the dollar's movement and the gap between official and parallel exchange rates.

Read more: MP: Iraq food prices rise 30% after dinar devaluation

Price Hikes Under Scrutiny

In a statement, trade Ministry adviser Mohammed Hanoun said inspection teams were monitoring markets for unjustified price increases, price manipulation, and monopolistic practices, while checking whether prices reflected actual production, import, transport, and distribution costs.

The higher dollar exchange rate did not justify price increases across all goods, particularly local products and previously imported stock purchased at lower rates, Hanoun said, rejecting attempts to exploit currency fluctuations for excessive profits at consumers’ expense.

He added that the ministry would continue working to increase supplies of essential goods, encourage competition, and protect consumers' purchasing power.

Read more: Iraqi traders count losses after dinar devaluation