Iraq's core annual inflation rose to 6.3 per cent in May from 6.1 per cent in April, driven by the cost of imported goods and services, especially healthcare, a senior central bank official told Reuters on Sunday.

"There is some inflation for this year, but (it is) still under control. I don't think it would exceed (single digits)," senior central bank adviser Mudher Kasim said.

Iraq's central bank said in April it expected annual inflation to stay within single digits due to a national food ration programme which helped absorb some price increases.

Much of Iraq's imported wheat and rice goes towards the programme, which supplies staples to millions of Iraqis.

Iraq's economy is dominated by oil, which accounts for more than 95 per cent of revenues. The inflation rate is calculated by the COSIT statistics agency and the bank defines core inflation as excluding expenditure on fuel. – Reuters