The core annual inflation rate in Iraq rose to 6.3 per cent in May according to the Central Bank, rising from 6.1 per cent in April.

The inflation rate in the country has been increasing since the beginning of the year, with higher prices for food and electricity.

Rising costs for imported goods and services has also been driving the increase in the core inflation rate, which rose from 5.3 per cent in January to 5.5 per cent in February and 5.7 per cent in March. In December 2010, the inflation rate was 3.3 per cent.

The Central Bank does not expect the inflation rate to reach double-digit figures this year.