Prices for food and everyday goods have increased across the Kurdistan Region over the past three months. Officials blame both local and international factors. These include higher transport costs, rising fuel prices, more expensive raw materials, exchange rate fluctuations, and new customs procedures.
Market monitoring shows that many imported products now cost much more than before. Iranian goods have recorded some of the biggest increases. Prices for many of these products have nearly doubled.
Several essential items have become more expensive. A carton of tea has risen from 32,000 Iraqi dinars to 40,000 dinars. Tomato paste has increased from 23,000 dinars to 30,000 dinars. A carton of cooking oil now costs 14,000 dinars, up from 10,000 dinars. A five-kilogram bag of rice has climbed from 8,000 dinars to 10,250 dinars. Clothing, shoes, and electrical appliances have also become more expensive.
Sarwar Hawari, Deputy Minister of Trade and Industry, said exchange rate differences remain a key reason for higher prices. Companies that have not registered under Iraq’s ASYCUDA customs system cannot buy U.S. dollars at the official exchange rate. The official rate is 132,000 dinars per $100. Instead, they buy dollars on the parallel market for more than 150,000 dinars per $100. That increases import costs and pushes retail prices higher.
Hawari also said delays in implementing the ASYCUDA system at Kurdistan Region border crossings have created extra challenges. Therefore, these delays have slowed imports and increased costs for traders.
Officials said importing goods remains legal. However, companies must now meet new federal requirements. These include company registration, customs duties, taxes, and industrial documentation. As a result, importing goods has become more complicated.
Authorities believe prices could stabilize after the ASYCUDA system is fully implemented. Erbil and Baghdad have already agreed on about 80% of the outstanding issues. Only two points remain unresolved. They relate to customs revenues and fees. Both prime ministers will discuss those issues before reaching a final agreement.
Officials expect the agreement to improve trade, ease imports, and help lower prices for consumers across the Kurdistan Region.
