The attack in the Shaab neighborhood occurred at around lunchtime, the officials said, speaking on condition of anonymity because they were not authorized to brief the media.
Daesh (ISIL) terrorist group claimed responsibility for the attack in a statement carried by the Daesh-linked Aamaq news agency.
The claim could not be independently verified, but it was carried by a news organization affiliated with the Daesh group, the Associated Press reported.
The attack comes as Iraqi security forces are preparing for an operation to retake the militant-held northern city of Mosul, the country’s second largest city, from the Daesh terrorist group.
In the past the extremists have increased insurgent attacks inside government-held territory far from the front lines after suffering territorial losses on the battlefield.
Iraq has seen several bombings in recent months, though most have had lower death tolls than Saturday’s attack. In July, a massive car bomb in central Baghdad’s popular shopping district of Karradah killed about 300 people and forced the resignation of the country’s interior minister.