International Monetary Fund: Iraq's inflation rate is the lowest in the Arab world.
Data from the International Monetary Fund (IMF) showed that the inflation rate in Iraq reached about 1.5% by the end of 2025, making it among the lowest inflation rates in Arab countries, according to the Fund’s indicators for consumer price expectations.
According to data from World Economic Outlook and the IMF's country database, Iraq recorded a low inflation rate compared to a number of Arab economies that continued to experience high price pressures during the same year, reflecting relative stability in domestic prices.
Inflation rate in Iraq
The IMF data indicates that the decline in inflation in Iraq is linked to several factors, including improved availability of goods in the markets, relative stability of the exchange rate, and government policies related to imports and public spending, despite the continued regional and global economic challenges.
In the same context, the IMF data showed a wide disparity in inflation rates among Arab countries at the end of 2025, with some countries recording high rates, while others, including Iraq, maintained relatively low levels, reflecting the different economic conditions and monetary and fiscal policies adopted in each country.
A lower inflation rate is an important indicator of relatively stable purchasing power, but it does not necessarily reflect an overall improvement in living conditions, given the continued challenges of unemployment and income levels. link