The lower prices of oil and basic commodities will push the inflation rate in Arab countries slightly down by the end of the current year, a report by a pan-Arab monetary body reveals.
Inflation, which stood at 4.27 per cent in Arab countries at the end of 2014, is forecast to dip by 0.13 per cent by the end of 2015, the Arab Monetary Fund says.
The Arab Monetary Fund (AMF) is a regional Arab organisation, founded in 1976 and has been operational since 1977. It is a working sub-organisation of the Arab League.
However, the report says that domestic unrest in some Arab countries will continue to throw inflationary pressure on prices because of reasons related to supply sustainability.
Furthermore, the report projects Arab Gulf oil exporters to deliver an economic growth of 4.4 per cent this year while the economies of non-oil producers are expected to grow by 3.7 per cent.
The pan-Arab monetary body says economic challenges still persist in some Arab countries, adding that marginal growth rates that hamper efforts to slash unemployment and slow the pace of structural reforms are one such challenge.
According to the report, published by Al-Ittihad, Arab governments will maintain the current fiscal policies in order to address pressures on national currencies because of the expected rise of the dollar.