Iraq Market Monitor Report, Issue No. 5: December 2016

Situation Report
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  • As the Mosul offensive entered its third month, new waves of displacement led to an increased demand in Kirkuk governorate.
    Returns in Anbar are also challenging markets which have however been able to absorb the demand shocks.

  • The cost of the food basket decreased by 6% at national level. The situation normalized after two months in Kirkuk showing the ability of the market to adjust to the increased demand of IDPs.

  • The purchas ing power of population living in hotspot locations is still 20% lower than in the rest of the country.

  • Food is now available in all areas monitored by WFP, including liberated areas in Mosul. The high prices in Hawija make food inaccessible for the most vulnerable. Key informants reported security concerns in Tarmia and still feel unsafe in Falluja and Heet.

  • Next month’s bulletin (January) will cover Mosul city in depth.

Socioeconomic Background

As the Mosul offensive entered its third month, the military operations to retake Mosul from the Islamic State of Iraq and the Levant (ISIL) have intensified and over 161,000 people have been displaced from Mosul city and its surroundings by the fighting, 148,000 of whom are still displaced. New displacements continue, with almost 32,000 people having fled the city since military operations escalated on 29 December .

Thanks to WFP humanitarian assistance, IRW key informants reported that newly liberated areas of the city have been supplied with food. This allowed stabilizing the market.

On the other hand, displacement from Hawija to Daquq and Tikrit intensified. The district has been sieged since mid-2014 and in the last 4 months 75,000 people fled.
Meanwhile, almost 1.4 million people have returned to their homes, 43% of whom went back to Anbar1 .
Markets all over Iraq are showing a good absorption of returnees’ demand and business activities are slowly resuming