Macroeconomic Forecast Bahrain

Consumer price inflation in Bahrain remains relatively subdued according to latest data from the Central Informatics Organization, coming in at only 0.9% y-o-y in January. While elevated global commodity prices and potential supply shortages amidst the outbreak in public unrest could push up prices higher in the near term, we stress that inflation will remain in the low single digits through end-year. We project consumer price inflation coming in at 2.0% at end-2011 accordingly.

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