São Paulo – Inflation in the Gulf Cooperation Council (GCC) states is projected to have risen by 2.1% this year, a report by the GCC Statistical Center revealed. The group consists of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
Last year consumer prices rose by 1.2% in the region. Looking forward, inflation rate forecasts for 2022 and 2023 are predicted at 1.8% and 2.6%, respectively.
Inflationary pressures will come from jumps in costs of imported raw materials, the report explained. Also, consumer prices will rise as a result of higher consumption and public expenditure following improvements in employment rates and household income.
Last year, all GCC states experienced deflation except for Saudi Arabia and Kuwait, which reached inflation rates of 3.4% and 2.1%, respectively, thus pushing the region’s overall inflation rate to 1.2%.
The information was originally published on the website of Arab News.
Translated by Guilherme Miranda