Wednesday, September 27, 2006
Inflation rises in Iraq
Economy
After three years of the U.S.-led invasion, Iraqis are struggling with a surge in violence as well as rising prices as inflation spirals out of control. Fuel and electricity prices are up more than 270 per cent, according to Iraqi government statistics. Tea in some markets has quadrupled, egg prices have doubled. The rise in living costs has come as a shock to many Iraqis, who make about 150 dollars to 200 dollars per month on average if they have jobs. Estimates of unemployment range from 40 to 60 per cent.
Many Iraqi families struggle to make ends meet. Though more than three years after the collapse of the Saddam regime, the Iraqis still face a severe shortage of electricity. The government provides electricity for four to six hours a day, nearly every family turns to alternative power sources such as generators, which cost an average of 35 dollars per month. Gasoline in state-run gas stations is sold at 350 IDs (0.24 dollar) per liter, but is in short supply. Many people have to purchase gasoline 1,500 IDs (1 dollar) per liter in black markets.
