Iraq's core inflation dips

Iraq's core annual rate of inflation fell to 6.4 percent in November from 6.9 percent in October, mainly due to a drop in the cost of food items, a central bank official said on Monday. A dip in the cost of clothes and industrial items was also behind the decline, Mudher Kasim, a deputy central bank governor, told Reuters.
"The reasons behind last month's inflation decrease were the same reasons behind the November figure. The central bank expects the trend (for inflation) to decline (further)," Kasim said.
Iraq is slowly trying to rebuild as it recovers from decades of war and economic sanctions. Its economy is dominated by oil, which accounts for around 95 percent of government revenue. Core inflation excludes expenditure on fuel. Finance Minister Rafie al-Esawi said the proposed 2012 budget of $100 billion, which still needs parliamentary approval, was based on forecasts of 5 percent of gross domestic product growth and 5 percent inflation for the year.