There was no immediate claim of responsibility for the blast in Rashidiya, but ISIS regularly carries out such bombings in the capital and other parts of Iraq, where it seized large swathes of territory in 2014.
A similar attack in Rashidiya on Tuesday killed nine people.
A blast in the central Karrada district on July 3 killed at least 292 people, making it one of the worst among the hundreds of suicide bombings carried out in Iraq since US led forces toppled Saddam Hussein 13 years ago.
The high death toll prompted a public outcry in Baghdad, with residents blaming the government for not sufficiently securing the capital.
Islamic State has been turning increasingly to suicide bombings, which US and Iraqi officials have touted as proof that battlefield setbacks are weakening the ISIS terrorists.
In a US backed offensive, the Iraqi army retook the city of Ramadi from Islamic State this year, and more recently Falluja, which the government said had been a launchpad for the group's Baghdad suicide bombings.
But critics say a global uptick in suicide attacks attributed to the group suggests it may just be adapting and would survive.
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