The recently issued World Economic Outlook report revealed concerning figures, indicating projections that the weighted global inflation rate will rise to 3.1% during 2026. This percentage, representing a reversal of the downward trajectory seen last year, sounds the alarm for central banks worldwide and in the Arab region in particular. The numbers are directly linked to the continuation of military tensions and trade route disruptions, which have driven up shipping freight rates by over 40% on certain maritime routes. For Iraq, these figures mean that the governmental and private import bills will experience similar inflation, potentially consuming any possible increase in oil revenues. The report clearly indicates that these inflationary figures will heavily squeeze the budgets of developing nations, warning that slowing growth coinciding with rising prices will create a dangerous state of stagflation.
