Inflation pressures are easing in most countries in the Middle East. In the oil-rich Gulf States, despite a rapid rise in food inflation over the past two months, subdued housing costs have eased pressures on headline inflation in most countries. Meanwhile, food subsidies and a general slowdown in economic activity means that inflationary pressures are easing in Egypt too. The exception to this are the other resource-poor Arab countries – such as Jordan and Lebanon – where inflation rose.
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