VZCZCXRO0603
RR RUEHBC RUEHDA RUEHDE RUEHIHL RUEHKUK
DE RUEHGB #3601 2691301
ZNR UUUUU ZZH
R 261301Z SEP 06
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC 7111
INFO RUCNRAQ/IRAQ COLLECTIVE

UNCLAS BAGHDAD 003601 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
NEA/I PLEASE PASS TO TREASURY DEP'T 
 
E.O. 12958: N/A 
TAGS: ECIN ECON EFIN IZ
SUBJECT: PRICES RISE IN AUGUST BY 15.1 PERCENT 
 
REF: BAGHDAD 3460 
 
¶1. (SBU) Iraq's consumer price index (CPI) increased 15.1% in 
August, and the year-on-year increase reached 76.6%. The 
increase is largely driven by rising prices in the categories 
of Fuel/electricity (57.8%) and Transport/communication 
(20.8%). GOI's Central Office of Statistics and Information 
Technology (COSIT) lists disaggregated percentage increases 
(month-on-month) as follows: 
 
Food                       6.1% 
Tobacco/liquor             0.1% 
Clothing/shoes             1.5% 
Furniture                  0.8% 
Fuel/electricity          57.8% 
Transport/communications  20.8% 
Medical services/medicine  7.0% 
Misc. goods/services       3.3% 
Rent                       0.7% 
 
Compared to the data from August 2005, prices grew at the 
following rates: 
 
Food                      39.7% 
Tobacco/liquor            12.8% 
Clothing/shoes            26.7% 
Furniture                 14.2% 
Fuel/electricity         321.8% 
Transport/communications 235.8% 
Medical services/medicine 22.6% 
Misc. goods/services      37.5% 
Rent                      34.7% 
 
¶2. (SBU) COSIT describes its CPI data as an imperfect measure 
of inflation. Given data collection limitations and an 
outdated basket of goods, real inflation is likely higher 
than the COSIT estimates (reftel). 
KHALILZAD