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The Islamic State group has claimed responsibility for Monday's car bomb attack in Baghdad that shook a period of brief peace for the capital and left 27 people dead.

IS-affiliated website claimed responsibility for the attack hours after militants parked an explosive-laden car in a commericial area of a Shia district in Baghdad.

Iraqi officials had described the bombing as a suicide attack.

Iraqi authorities on Tuesday raised the causality figures to 27 dead and 45 wounded and five missing. They spoke on condition of anonymity because they were not authorised to talk to reporters.

Previous reports on the day reported two were injured at a checkpoint bombing.

The militants' are under pressure from Iraqi forces who are entering the group's last strongholds in Mosul.

Despite the losses, IS claimed to have kidnapped an Iraqi police colonel and eight other officers in the city during fighting.

Agencies contributed to this story.