Shafaq News/ The inflation rate in Iraq has increased by tenfold since 2020, the US-based Global Finance (GF) Magazine said on Saturday.
According to the International Monetary Fund (IMF) database of 191 countries, Iraq's inflation rate rose from 0.6% in November 2020 to 6.4% during the same period in 2021.
The table showed that the inflation rate in Iraq in November 2019 was only 0.2%.
Only Sudan (194.6%), Yemen (40.8%), Libya (20.21%), and Algeria (6.5%) had higher inflation rates than Iraq among the Arab countries, according to the IMF data that excluded Syria, Lebanon, and Somalia.
Venezuela registered the highest inflation rates globally with 2,700%, followed by Sudan (194.6%) and Zimbabwe (92.5%).
Samoa (-3%) and Comoros (-1%) registered the highest deflation rates.
Inflation refers to a general progressive increase in prices of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduction in the purchasing power of money.
The contrast is deflation, a sustained decrease in the general price level of goods and services.
Uncontrollably growing inflation can plunge the economy into a stagflationary situation where economic growth slows, unemployment remains high and inflation remains at elevated levels. Even worse, although very uncommon, is the specter of a hyperinflation scenario, where prices grow uncontrollably sending the value of the currency into freefall.
