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Tue 28 Sep 2010 12:49 PM

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Inflation pressures in GCC 'contained' - Sheikh Salem

Kuwait's central bank head says the global rise in food prices needs attention.

Inflation pressures in GCC 'contained' - Sheikh Salem
KUWAIT INFLATION: Saudi inflation may slow to 5.5 percent by the end of the year, according to a Sept. 25 report by Al-Rajhi Capital.(Getty Images)

Inflationary pressures in Gulf Cooperation Council countries are “contained” though they haven’t disappeared completely, Kuwaiti Central Bank Governor Sheikh Salem Abdul Aziz Al Sabah said.

“The global increase in food prices needs attention,” Sheikh Salem said in Kuwait City today, according to the text of a speech delivered at a meeting of central bankers from the GCC countries. “Inflation in the GCC has been noticeably contained but that does not mean that these pressures have disappeared completely.”

Inflation in Saudi Arabia, the largest economy among the six GCC members, climbed for a seventh month in August on higher global food prices, Saudi central bank Governor Muhammad al- Jasser said on Sept. 26. While the increase is “worrying,” it’s “premature” to make conclusions on consumer prices this year, al-Jasser said.

Saudi inflation may slow to 5.5 percent by the end of the year, according to a Sept. 25 report by Al-Rajhi Capital. GCC members Kuwait and Bahrain have also reported higher inflation rates in recent months.

The other members of the group are Oman, the United Arab Emirates and Qatar. (Bloomberg)

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