Price pressures have eased across the Middle East

Inflation pressures are easing in most countries in the Middle East and North Africa region. The drop in global commodity prices has led to a fall in food price inflation across the region. Meanwhile, weak domestic demand in the resource-poor countries means that core price pressures are easing too. Even in the oil-rich Gulf States, with the exception of Saudi Arabia, fears of overheating are fading. This should encourage governments to maintain the pace of fiscal stimulus in most of the Gulf countries.