Iraq

Iraq Market Monitor Report, Issue No. 15: October 2017

Format
Situation Report
Source
Posted
Originally published
Origin
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Highlights

• The current displacement situation in Iraq, with an increase in returns and over 3 million people still displaced, has resulted in increased volatility in the markets that have however been mostly able to respond to the demand fluctuations.

• Food prices decreased on by 1% across the country, but markets showed lower integration in October.

• Prices in Kirkuk further increased by 17% and are the highest in the country.

• Alert for Price Spikes (ALPS) indicator shows sugar, khoboz bread and vegetable oil to be respectively at crisis, alert and stress level.

• The wage of unskilled labour has decreased by 4% across the country, mostly due to substantial drops of salaries in hard-to-reach areas. This is increasing divergence across governorates which might cause labour migration.

Socioeconomic Background

Thousands fled conflict during the military realignment in the disputed areas of northern Iraq in late October. Over 3 million people are currently displaced, mostly from Kirkuk, Makhmur and Tooz. Some 150,000 returned to Kirkuk, while no returns to Tooz are recorded. Return movements to Hawija began quickly after the area was retaken from ISIL in September’s military operations. However a recent assessment indicates a shortage of basic services in the area. Military operations to retake Ka’im and Ru’ua in western Anbar from the Islamic State of Iraq and the Levant began on 26 October. This part of western Anbar, on the border with Syria, is the last major territory held by ISIL in Iraq. The fluidity of the situation resulted in increased volatility in the markets that have however been mostly able to respond to the demand fluctuations.