Inflationary pressures will come from jumps in costs of imported raw materials and consumables, the report explained. Also, consumer prices will rise as a result of higher consumption and public expenditure following improvements in employment rates and household income.
All Gulf countries are forecasted to have inflation rates in the range of 1-3 percent in 2022, with Qatar hitting the highest rate.
Last year, all GCC states experienced deflation – a drop in consumer prices – except for Saudi Arabia and Kuwait, which reach inflation rates of 3.4 percent and 2.1 percent. The latter two pushed the region’s overall inflation rate to 1.2 percent in 2020.