The document discusses inflation rates in GCC countries from 2013-2014. It provides data on annual inflation rates for various goods and services in each country. Inflation was generally between 1-3% annually across countries, with some categories like housing and food prices experiencing higher inflation of 5-7% in some nations. Factors driving inflation included increasing demand from population growth, low unemployment increasing spending, and tax increases also boosting aggregate demand. Inflation remained similar among GCC countries due to interconnected economies and trade.

1. INFLATION IN GCC
COUNTRIES
Group A

2. WHAT IS INFLATION?
• An increase in the price of goods over time
• With the same of money you will have less purchasing power
• Unemployment  as inflation 
e.g. 1 gallon of milk=$5
Inflation rate =10%/yr
New price next year=$5.5

3. CAUSES OF INFLATION
1. Unemployment is at natural rate
which depends on GDP at full-
employment level.
2. This  AD so when production at full
capacity prices are increased causing
inflation.
3. Can be caused from  consumption, 
investment or government spending
4.  taxes also  spending which  AD
• A shift in aggregate demand to the right

4. 2. COST PUSH
INFLATION
Possible factors:
1. wages
2.  Import prices
3. Raw Material Prices
4. Profit Push Inflation
5. Productivity
6. Taxes
• A shift in aggregate supply to the
left

5. Rising house prices
• Rising house prices indirectly cause inflation by encouraging people to buy
and invest in real state. This causes growth in the economy and leads to
demand pull inflation. AD (Aggregate demand) exceeds AS (aggregate supply)
causing inflation.
Printing more money
• Creating revenue by printing money is called Seigniorage
• money supply leads to inflation
• Reduces purchasing power
• Too much money supply my cause hyperinflation
• In a recession it is possible to increase money supply without increasing
inflation.

6. INFLATION RATE IN GCC 2014
•The range of inflation rates for GCC in 2014 was 0.8%-3.1%.
Annual Inflation
rate (%)
Countries
3.1 United Arab
Emirates
3.04 Kuwait
2.7 Qatar
2.5 Bahrain
2.4 Saudi Arabia
0.08 Oman
Inflation
increase from
November and
December (%)
Countries
0.34 United Arab
Emirates
0.97 Kuwait
0.3 Qatar
0.2 Bahrain
0.1 Saudi Arabia
0.08 Oman

7. INFLATION RATE IN GCC 2014
CONTD..
Annual
Inflation rate
of food prices
(%)
Countries
1.33 United Arab
Emirates
2.57 Kuwait
0.4 Qatar
2.6 Bahrain
2.6 Saudi Arabia
0.22 Oman
Annual
Inflation rate
of housing
and utility
prices (%)
Countries
5.39 United Arab
Emirates
5.03 Kuwait
7.3 Qatar
6.1 Bahrain
2.5 Saudi Arabia
0.38 Oman
Annual
Inflation rate
of transport
prices (%)
Countries
1.82 United Arab
Emirates
1.54 Kuwait
1.2 Qatar
0.5 Bahrain
1.5 Saudi Arabia
0.31 Oman

8. INFLATION RATE IN GCC 2013
•The range of inflation rates for GCC in 2014 was 1.1%-3.5%.
•Base year of 2007 for comparison
Consumer
Price Index
increase for
2013 (points)
Countries
118.1 United Arab
Emirates
129.2 Kuwait
114.4 Qatar
114.8 Bahrain
126.7 Saudi Arabia
129.9 Oman

9. INFLATION RATE IN GCC 2013
CONTD..
•Base year 2007 for comparison.
Consumer
Price Index for
food and
drinks in 2013
(points)
Countries
140.1 United Arab
Emirates
141.9 Kuwait
136.9 Qatar
137.5 Bahrain
140.5 Saudi Arabia
137 Oman
Price Increase
for food and
drinks in 2013
(%)
Countries
2.7 United Arab
Emirates
4.0 Kuwait
2.3 Qatar
2.3 Bahrain
5.7 Saudi Arabia
2.8 Oman

10. INFLATION RATE IN GCC 2013
CONTD..•Base year 2007 for comparison
Consumer
Price Index for
tobacco in
2013 (points)
Countries
144.3 United Arab
Emirates
132.6 Kuwait
128.7 Qatar
140.5 Bahrain
153.1 Saudi Arabia
126.5 Oman
Price Increase
for tobacco in
2013 (%)
Countries
14.2 United Arab
Emirates
7.1 Kuwait
0.6 Qatar
5.5 Bahrain
8.4 Saudi Arabia
1.5 Oman

11. INFLATION RATE IN GCC 2013
CONTD..•Base year 2007 for comparison.
Consumer
Price Index
increase for
clothes and
shoes in 2013
(points)
Countries
109.2 United Arab
Emirates
126.8 Kuwait
116.6 Qatar
109.6 Bahrain
104.8 Saudi Arabia
112.3 Oman
Price Increase
for clothes and
shoes in 2013
(%)
Countries
0.3 United Arab
Emirates
-0.2 Kuwait
0.2 Qatar
0.8 Bahrain
1.5 Saudi Arabia
1.8 Oman

12. INFLATION RATE IN GCC 2013
CONTD..•Base year 2007 for comparison.
Consumer Price
Index increase
for housing
,water,
electricity and
fuel in 2013
(points)
Countries
108.2 United Arab
Emirates
127.7 Kuwait
89.5 Qatar
95.8 Bahrain
153.8 Saudi Arabia
Annual
inflation for
housing ,water,
electricity and
fuel in 2013 (%)
Countries
0.3 United Arab
Emirates
3.9 Kuwait
5.9 Qatar
8.7 Bahrain
3.4 Saudi Arabia
0.5 Oman

13. INFLATION RATE IN GCC 2013
CONTD..•Base year 2007 for comparison.
Consumer
Price Index
increase for
furniture and
household
goods in 2013
(points)
Countries
126.9 United Arab
Emirates
131.9 Kuwait
122.4 Qatar
137.5 Bahrain
122.6 Saudi Arabia
Price Increase
for furniture
and household
goods in 2013
(%)
Countries
0.9 United Arab
Emirates
3.2 Kuwait
3.1 Qatar
7.1 Bahrain
4.3 Saudi Arabia
2.2 Oman

14. INFLATION RATE IN GCC 2013
CONTD..•Base year 2007 for comparison.
Consumer
Price Index
increase for
medical care in
2013 (points)
Countries
107.3 United Arab
Emirates
126.8 Kuwait
116.9 Qatar
106.2 Bahrain
109 Saudi Arabia
113.8 Oman
Price Increase
for medical
care in 2013
(%)
Countries
0.4 United Arab
Emirates
1.2 Kuwait
2.3 Qatar
0.3 Bahrain
3.2 Saudi Arabia
1.5 Oman

15. INFLATION RATE IN GCC 2013
CONTD..•Base year 2007 for comparison.
Consumer
Price Index
increase for
transportation
costs in 2013
(points)
Countries
120.2 United Arab
Emirates
122.6 Kuwait
127.9 Qatar
107.5 Bahrain
111 Saudi Arabia
116.5 Oman
Annual
inflation for
transportation
costs in 2013
(%)
Countries
1.0 United Arab
Emirates
1.2 Kuwait
1.6 Qatar
0.8 Bahrain
2.5 Saudi Arabia
0.5 Oman

16. INFLATION RATE IN GCC 2013
CONTD..•Base year 2007 for comparison.
Consumer Price
Index increase for
communication
services in 2013
(points)
Countries
98.2 United Arab
Emirates
101.3 Kuwait
85.4 Qatar
87.2 Bahrain
93.8 Saudi Arabia
80.1 Oman
Price Increase
for
communicatio
n services in
2013 (%)
Countries
No change United Arab
Emirates
-0.1 Kuwait
0.2 Qatar
1.5 Bahrain
1.8 Saudi Arabia
-2.3 Oman

17. INFLATION RATE IN GCC 2013
CONTD..•Base year 2007 for comparison.
Consumer
Price Index
increase for
recreation and
culture in
2013 (points)
Countries
115.6 United Arab
Emirates
128.1 Kuwait
101.6 Qatar
136.4 Bahrain
106.3 Saudi Arabia
108.7 Oman
Price Increase
for recreation
and culture in
2013 (%)
Countries
0.9 United Arab
Emirates
1.9 Kuwait
4.5 Qatar
0.6 Bahrain
1.7 Saudi Arabia
-1.1 Oman

18. INFLATION RATE IN GCC 2013
CONTD..•Base year 2007 for comparison.
Consumer
Price Index
increase for
education in
2013 (points)
Countries
147.1 United Arab
Emirates
124.3 Kuwait
149.4 Qatar
121.4 Bahrain
112.6 Saudi Arabia
152.5 Oman
Price Increase
for education
in 2013 (%)
Countries
5.4 United Arab
Emirates
0.8 Kuwait
8.6 Qatar
4.5 Bahrain
2.2 Saudi Arabia
4.2 Oman

19. INFLATION RATE IN GCC 2013
CONTD..•Base year 2007 for comparison.
Consumer
Price Index
increase for
restaurants
and hotels in
2013 (points)
Countries
139.9 United Arab
Emirates
126.6 Kuwait
114.2 Qatar
107.8 Bahrain
126.8 Saudi Arabia
134.1 Oman
Price Increase
for restaurants
and hotels in
2013 (%)
Countries
1.9 United Arab
Emirates
0.6 Kuwait
-0.1 Qatar
0.6 Bahrain
4.2 Saudi Arabia
1.1 Oman

20. INFLATION RATE IN GCC 2013
CONTD..•Base year 2007 for comparison.
Consumer Price
Index increase
for miscellaneous
goods and
services in 2013
(points)
Countries
23.6 United Arab
Emirates
28.7 Kuwait
55.6 Qatar
37.6 Bahrain
17.6 Saudi Arabia
77.4 Oman
Price Increase
for
miscellaneous
goods and
services in
2013 (%)
Countries
-0.2 United Arab
Emirates
2.2 Kuwait
-4.4 Qatar
3.5 Bahrain
-0.2 Saudi Arabia
0.3 Oman

21. CONCLUSION
•Inflation rose during 2013 and 2014 due to the population increasing
which increased demand for all products.
•Low unemployment and tax increases spending which creates growth
in the economy.
•Similar inflation rates among GCC since there is a lot of export and
import of goods among them.
•As long as oil price is high their economies will continue to grow with
increasing inflation.