Qatar Inflation to stay around 13.75% in 2008

01 Jul, 2008

According to Mr Sheikh Abdullah Bin Saud al Thani governor of Qatar central bank, Qatari inflation is likely to stay about 13.75% in 2008 as food and oil prices remain high. He added that "Due to agricultural and commodity prices, it will stay around the same level of 13.75%."

Qatar's inflation, which accelerated to a record 14.8% in the first quarter, is the highest among the six GCC states, including Saudi Arabia and the United Arab Emirates. Inflation has risen across the region as oil fueled economic growth created shortages of real estate and services and the weaker dollar made imports more expensive.

Qatar Central Bank said that M2 money supply growth, an indicator of future inflation, accelerated to an annual 53% in March 2008 from 33% in December 2007.

Qatar has taken a number of measures, including raising the bank reserves requirement, in an attempt to slow money supply growth and inflation.

Source