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Sun 25 May 2008 12:55 PM

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Bahrain inflation accelerates to 6.2%

Consumer prices advance 0.9% in April, on rising cost of food, drink and tobacco, gov't figures show.

Consumer prices in Bahrain advanced 0.9% in the month to the end of April, the highest monthly jump this year, on the rising cost of food, drink and tobacco, government data showed on Sunday.

The consumer price index rose to 106.2 points on April 30, compared with 105.24 points at the end of March, the Central Informatics Organisation (CIO) said in a statement, without giving comparative data for April last year.

This month's rise compares to a 0.4% gain in March.

"The main reason for this rise is a 3.3% rise in the price of food, drink and tobacco, and that is a result of a rise in grain prices generally, most importantly rice," the CIO said.

The food, beverage and tobacco index touched 116.8 points, up 3.3% form the month earlier, the data showed. Housing costs rose 0.4%.

Like most of its neighbours in the world's biggest oil-exporting region, Bahrain pegs its currency to the dollar, forcing it to track US interest-rate cuts and constraining its ability to fight inflation.

Rising global food prices, a weak dollar and soaring rents have driven prices rises across the region, where economies are booming on a near six-fold increase in oil prices since 2002.

The CIO said in January it had revised the consumer price index and was using 2006 as its base year.

Calculations of annual inflation for each month would be done at a base of 100 basis points until it works out new weights to calculate prices for previous years, the CIO has said.

That would indicate annual inflation in April of 6.2%, compared with 5.24% in March, according to newswire Reuters calculations. (Reuters)

Munna Bashir 11 years ago

Never understoon the inflation rates published officially. Like in Dubai they say 9-10% but most prices have gone up 30-100% up..