The market in the Kurdistan Region has seen strong price increases over the past year. Global conflicts, currency depreciation, and higher import costs are the main drivers. Many basic food items are now significantly more expensive than before.
The war in Ukraine in 2022 disrupted global supply chains. Later, regional tensions involving Iran, Israel, and the United States added more pressure. These events affected trade routes and raised shipping costs. At the same time, the Iraqi dinar weakened against the U.S. dollar. This further increased import expenses.
A recent market review shows sharp rises in food prices. Rice has increased by around 25% in one year. Red meat has gone up by about 12%. A 30 kg bag of rice used to cost 45,000–48,000 IQD. Now it sells for 60,000–62,000 IQD.
Meat prices have also risen steadily. Lamb meat increased from 18,000 IQD per kilogram to 23,000 IQD. Other cuts rose from 18,000 to 20,000 IQD. Butchers say local production cannot meet demand. As a result, imports come from Iran, Turkey, Syria, and India.
Imported livestock is often more expensive. Transport costs and currency exchange rates add pressure. Traders also face unstable supply conditions in regional markets.
Currency depreciation is another key factor. At the start of 2026, 100 U.S. dollars equaled 142,000 IQD. It now exceeds 153,000 IQD. This means the dinar lost about 7.7% of its value. Importers say this directly affects retail prices.
Officials say global inflation also plays a role. Higher customs duties and new import systems add extra costs. Limited financial coordination between Erbil and Baghdad forces many traders to buy dollars on the open market. This increases prices further.
Other essential goods like cooking oil and dairy products have also become more expensive. The overall trend shows continued inflation across the region’s food market.
