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Rising prices in GCC countries to |
The recent economic performance of the Gulf Cooperation Council (GCC) countries has been impressive, while the rising prices will accompany the strong performance of the regional economies, according to latest regional outlook of the International Monetary Fund (IMF).
"Rent and food prices are a continuing worry. That essentially means our estimate of 9 per cent inflation for the UAE will be a floor level estimate which could be higher by the year end," said Mohsin Khan, regional director of IMF's Middle East and Central Asia Department.
Over the past five years, the GCC countries grew at an annual rate of about 7 per cent, owing to record-high oil prices and a rapidly growing non-oil sector. However, the expansion has been accompanied by a general increase in consumer prices. Headline inflation averaged about 6 per cent in 2007, with core inflation tracking closely behind at 5 per cent. In the UAE, the inflation estimate was revised to 11 per cent last year against an earlier estimate of 9 per cent.
