A car bomb exploded in a market in the Iraqi capital's Shiite-majority district of Sadr City on Monday, killing 11 people and wounding 26, security officials and medical sources said.
The Islamic State group claimed responsibility for the attack in a statement carried by its propaganda agency Amaq.
A police officer, who asked to remain anonymous, said the explosion ripped through a market in northeastern Baghdad leaving "11 dead and 26 wounded".
Members of the security forces were among the victims, medical sources said, confirming the toll.
Security sources said the bombing occurred near one of Baghdad's largest shopping centres at around 10:30 am (0730 GMT).
The casualties were evacuated to two hospitals in Sadr City.
The explosion damaged several stalls at the market and gutted shops in the adjoining shopping centre, with debris, glass and vegetables strewn across the ground, an AFP reporter said.
Bulldozers were still trying to clear the area at midday, including removing two cars destroyed in the blast.
The mangled hulk of a vehicle suspected of being the car used in the attack could be seen in the area.
IS has claimed several bombings in Baghdad, many taking place after the jihadist group became the target of a massive assault on its Mosul bastion which Iraqi forces retook in July after nine months of fighting.
The latest bombing comes as Iraqi forces and the Hashed al-Shaabi paramilitary coalition dominated by Shiite fighters, some from Sadr City, battle IS in their last pocket in the northern province of Nineveh
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