Stagflation in Iraq - central bank

Iraq's central bank sounded a warning as inflation and unemployment hit high levels.

The central bank said: "If the current price developments are compared to unemployment levels and their high averages of around 50% then this indicates that the overall economy is sinking in what is called stagflation."

The consumer price index measure of inflation recorded an increase of nearly 70% by the end of July 2006 compared to a year ago, said the central bank, compared to June's 52.5% annualised increa