September 29, 2010Gulf inflation pressure contained: Kuwait CB
Kuwait City: Inflationary pressures in Gulf Cooperation Council countries are “contained” though they haven’t disappeared completely, Kuwaiti Central Bank Governor Sheikh Salem Abdul Aziz Al-Sabah said.
“The global increase in food prices needs attention,” Sheikh Salem said in Kuwait City on Tuesday, according to the text of a speech delivered at a meeting of central bankers from the GCC countries.
“Inflation in the GCC has been noticeably contained but that does not mean that these pressures have disappeared completely.”
Kuwait’s own inflation rose to a 13-month high of 4.0 per cent year-on-year in July, according to data released on Tuesday, though it is expected to decelerate towards the end of the year.
Inflation in the world’s top oil-exporting region started to pick up again this year but pressures remain low in most countries and analysts expect consumer price growth to stay well below the record, double-digit peaks of 2008 in coming months.
“Inflationary pressures have receded markedly in Gulf Cooperation Council countries,” Sheikh Salem Abdul-Aziz al-Sabah said in opening remarks at the Gulf central bankers meeting in Kuwait.
“However, this doesn’t mean they have completely disappeared. At this stage it is necessary to pay attention especially to signs of a rise in food prices internationally,” he said.
Inflation in Saudi Arabia, the largest economy among the six GCC members, climbed for a seventh month in August on higher global food prices, Saudi central bank Governor Muhammad al-Jasser said on Sept.26. While the increase is “worrying,” it’s “premature” to make conclusions on consumer prices this year, al-Jasser said.
Saudi inflation may slow to 5.5 per cent by the end of the year, according to a Sept.25 report by Al-Rajhi Capital. GCC members Kuwait and Bahrain have also reported higher inflation rates in recent months.
Kuwiat Times
