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NYT: Spike in Iraq inflation turns economy into shambles

RAW STORY
Published: Friday August 25, 2006

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A spike in Iraq inflation is turning the economy into shambles, according to an article slated for Saturday's New York Times, RAW STORY has found.

"Going to the market already requires courage -- after repeated bombings there -- and now, life's most basic needs are becoming drastically more expensive," reports Damien Cave for the Times. "The inflation rate has reached 70 percent a year, up from 32 percent last year."

"Wages are flat, banks are barely functioning and the consensus among many U.S. and Iraqi officials is that inflation will most likely accelerate," the article continues.

Excerpts from the Times article:

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For Mehdi Dawood, Iraq's failures have leached into the cucumbers, a staple of every meal that now devours a fifth of his monthly pension.

And it is not just the vegetables. Fuel and electricity prices are up more than 270 percent from last year's, according to Iraqi government figures. Tea in some markets has quadrupled, egg prices have doubled, and all over the country the daily routine now includes a new question: What can be done without?

"Meat, I just don't buy it anymore," said Dawood, 66, holding half-filled bags at a market in Baghdad. "It's too expensive.

"We are all suffering," he said. "It's the government's fault. There is no security. There is no stability."

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FULL TIMES ARTICLE AT THIS LINK