ERBIL, Kurdistan Region of Iraq – The Kurdistan Region recorded an annual inflation rate of 1.6 percent from March 2024 to March 2025, according to a Tuesday report by the Region's Statistics Office.

Compared to baseline levels in 2022 (taken as 100 percent for the following statistics), the Region recorded 107.6 percent in March 2025 and 105.9 percent in March 2024 , thus having “recorded a 1.6 percent increase compared to March 2024,” the report read, indicating a total inflation rate of 7.6 percent since the baseline was established in 2022. The report also detailed that in comparison to the previous month of February, there has been a reduction of 0.2 percent across the Kurdistan Region.

The inflation rate varies across different sectors, with the report noting that the prices of tools and "various services" rose by a rate of 18.5 percent, communications by 4.7 percent, transportation by 3.7 percent, and restaurants by 2.5 percent.

Of the Region’s provinces, Erbil has recorded the lowest rate of inflation since 2022 at 5.2 percent, followed by Duhok with 8.5 and Sulaimani with 9.3 percent respectively.

The Kurdistan Region’s 1.6 percent falls within a healthy range and below the widely accepted economic target of 2 percent. Erbil has recorded one of the lowest inflation rates across the region. In comparison, Turkey’s economy has inflated by 35.9 percent since last year, according to April data from the International Monetary Fund (IMF), while Iran has recorded 43.3 percent, Jordan 3.6 percent, and Iraqi 2.5 percent in the same timeframe.

The healthy inflation rates compared to regional countries can be attributed to Erbil’s amicable international relations and the government’s recent attempts at diversifying the country’s sources of income and revenue, with a thriving business culture and high levels of foreign investment being fostered by the Region's stability.