Shafaq News/ The International Monetary Fund (IMF) has projected a pronounced rise in the annual inflation rate of Iraq for the year 2023.

According to the multilateral financial institution's latest dossier, released this May, the consumer price inflation is anticipated to ascend to 6.6%, marking an increase from the preceding year's figure of 5%.

The forecasted acceleration in inflation underscores the considerable macroeconomic challenges Iraq continues to face. However, offering a silver lining, the IMF also predicts a significant abatement in the rate of inflation by 2024, forecasting a plummet to a mere 1.6%.

Comparative data from previous years demonstrates fluctuating inflationary trends in Iraq. The annual inflation in Iraq for 2020 stood at a relatively low 0.6%, subsequently catapulting to 6% in the following year.

In a wider Arab regional context, Algeria bore the brunt of the highest inflation, reaching an unsettling 9.3%, closely tailed by Egypt with an 8.5% inflation rate.

Conversely, Saudi Arabia demonstrated remarkable economic stability with the lowest recorded annual inflation rate amongst Arab countries, a meager 2.5% for the year 2022.

As always, investors and economists will be monitoring these figures closely, seeking to ascertain the veracity of these projections, and their subsequent impact on the macroeconomic stability of the region. 2023 is expected to be a critical juncture for the Iraqi economy, with the impending inflationary rise set to test the resilience of the country's economic framework under the government of Prime Minister Mohammad Shia al-Sudani.