The Governor for Kuwait’s Central Bank, Shiekh Salem Abdul Aziz Al Sabah, reports that although the pressures of inflation in the GCC have not completely ceased, they are being “contained.”
Sheikh Salem commented that the rising prices of food worldwide are something that should be looked at. This was said during a speech to a group of GCC central bankers.
He noted that the pressures of inflation are still present in the region, although the actual rate of inflation is under control.
Saudi Arabia’s inflation rate in August, for instance, rose on the backs of increasing food costs, the seventh consecutive month of increases for the nation as reported earlier by Governor Muhammad al-Jasser of Saudi’s central bank.
Al-Jasser noted that although the rising rate is a concern, it is far too early to draw any conclusions on where consumer prices are headed for 2010. A recent report by Al-Rajhi Capital stated that Saudi’s inflation rate could drop to 5.5 per cent by December.
Other nations included in the GCC, such as Bahrain and Kuwait, have experienced rising rates of inflation recently as well.Paul Holdsworth, Staff Writer, Gulf Jobs Market News