The attack on Thursday morning took place in a crowded vegetable market in Sadr City, a Shia district in the northeast of the Iraqi capital.
"A refrigerator truck packed with explosives blew up inside Jamila market at around 6am (03:00 GMT)," police officer Muhsin al-Saedi said.
"Many people were killed and body parts were thrown on top of nearby buildings."
The Islamic State of Iraq and the Levant (ISIL) released a statement online claiming the attack, reporters said.
One of the reporters reporting from Baghdad described the attack as devastating and said the death toll was expected to rise.
Iraq is experiencing an upsurge in instability with the government struggling to contend with the ISIL group [Photo: AP] |
"We are being told that a suicide bomber drove into the busy market and detonated himself," our correspondent said.
"The attack happened in a predominantly Shia neighbourhood similar to an attack in Baquba city two days ago that also killed dozens of people.
Iraq is experiencing an upsurge in instability with the government struggling to contend with the ISIL group.
ISIL overran large parts of Iraq in June 2014 and also holds significant territory in neighbouring Syria.
Source: Al Jazeera