Bahrain sees sharp rise in inflation in Oct

Annual inflation rate jumps up to 4.4% from just 3.2% in Sept, according to latest figures.
Bahrain sees sharp rise in inflation in Oct
By Daliah Merzaban
Thu 27 Nov 2008 11:12 AM

Annual inflation in Bahrain accelerated to 4.4 percent in October from 3.2 percent in September, government data showed.

The consumer price index of the smallest Gulf Arab economy rose to 108.87 points compared with 104.34 points a year earlier, according to data on the Central Informatics Organisation website.

Consumer prices in October rose 0.46 percent from September, as food, beverage and tobacco costs advanced 1.4 percent, the data showed.

Inflationary pressures in Bahrain were moderating, allowing the island kingdom to cut its key interest rates, the central bank said last month.

The Gulf Arab state, which pegs its currency to the dollar, slashed its repurchase rate by 125 basis points to 3.5 percent on Oct. 30 - part of a slew of measures by regional governments and central bank to unthaw credit markets during a global financial crisis. (Reuters)

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