Inflation Rate (CPI): Iraq

Analysis# Iraq Inflation Rate (CPI) Iraq's inflation rate stands at 2.5% in 2026, marking a dramatic stabilization from its turbulent past. The country experienced catastrophic hyperinflation of 53.2% in 2006 during post-invasion economic chaos, followed by deflation of -2.8% in 2009. Since 2005, inflation has declined 93.2 percentage points, reflecting Iraq's shift from acute macroeconomic instability toward relative price stability. The period from 2017 to 2020 saw near-zero inflation, with rates hovering between -0.2% and 0.6%. A sharp spike followed in 2021–2022, when inflation climbed to 6% and 5% respectively, likely driven by post-pandemic demand and currency pressures. Since 2023, inflation has moderated steadily—falling from 4.4% to 2.5%—suggesting Iraq's economy is entering a phase of sustainable, moderate price growth aligned with global norms.