Saudi Gazette - GCC inflation to stabilize to 3% in near term: Study

Saudi Gazette - GCC inflation to stabilize to 3% in near term: Study:

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GCC inflation is forecast to stabilize at a moderate level around the three percent mark in the near term as higher increases in housing costs are offset by lower food price rises, QNB Group report said.

“Overall, inflation in the GCC is likely to stabilize at around three percent,” QNB Group said. Strengthening non-oil growth and expanding populations will give prices, particularly rents, some upward impetus.

“However, this is likely to be counterbalanced by falling global food prices, which will make food imports cheaper and hold back inflation. Additionally, oil prices are expected to be slightly lower in 2014, which tends to ease inflationary pressures in the GCC as it results in less oil revenue flowing into the economy, weakening demand.”"

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