The Kurdistan Region posted the lowest inflation level in Iraq during the first quarter of 2025. According to the Central Bank of Iraq, the Kurdistan inflation rate stood at 2.2%. This figure placed the region below both central and southern provinces.
The bank reported inflation of 2.9% in the south and 2.6% in the center. By comparison, the Kurdistan inflation ratereflects stronger price stability. The data showed key categories with varied increases across the country.
In Kurdistan, the sharpest rise came in miscellaneous goods and services. This category jumped by 17.2%. Communications followed with an increase of 6.3%. Transport costs grew by 5.7%.
Food and non-alcoholic beverages, which form about a quarter of the inflation basket, increased by 1.9%. This was lower than the 2.3% rise recorded in central and southern provinces. Household equipment prices rose 1.2%. Health services went up 0.6%. Education costs grew 0.7%.
Housing, water, and electricity also showed modest growth in Kurdistan. Prices in this category climbed 1.1%. By contrast, central provinces saw a rise of 4.7%, mainly due to higher rents. The south recorded a 3.2% increase.
Economists noted that the Kurdistan inflation rate benefits from relative market stability. Lower housing and food price growth helped keep overall inflation down. At the same time, rapid growth in services and transport added pressure to local consumers.
The report also underlined regional differences. Central and southern provinces face stronger inflationary trends, driven by rent increases and higher demand. Kurdistan’s more moderate increases suggest stronger price control in key sectors.
The Central Bank said it will continue monitoring price shifts across provinces. Officials highlighted the importance of stability for growth and investment. With the Kurdistan inflation rate at 2.2%, the region remains Iraq’s most stable area for inflation in early 2025.