Inflation set to spike in UAE, other Gulf countries due to Russia-Ukraine war

News Network
May 30, 2022

Economists have warned that Inflation in the wider Middle East including the Gulf Cooperation Council countries will spike this year due to an increase in food and commodity prices after the Russia-Ukraine war.

“The UAE economy has had a strong start to 2022, with crude oil production up 12 per cent year-on-year in the first quarter of this year. Survey data points to a solid expansion in non-oil sectors as well. We expect inflation to average 4.3 per cent this year from 2.3 per cent previously, significantly higher than last year’s 0.2 per cent average consumer price index,” said Emirates NBD Research in a recent quarterly report on the region.

It is projected that the inflation will ease to 2.5 per cent for the UAE next year.

While inflation in most of the other Gulf countries will also witness a surge this year, with average inflation reaching 3.0 per cent, 3.5 per cent, 2.5 per cent, 3.5 per cent and 3.0 per cent in Saudi Arabia, Qatar, Oman, Kuwait and Bahrain, respectively.

The increase in inflation is attributed to the impact of the Ukraine-Russia war on the global food and other commodity prices as well as high crude oil prices.

James Swanston, economist for the Mena region at Capital Economics, said non-Gulf economies are more vulnerable to the fallout from the Ukraine war.

“Higher commodity prices will increase subsidy costs in North Africa, which is likely to prompt governments to cut expenditure elsewhere. At the same time, inflation will rise further and erode households’ real incomes,” he said.

He said higher commodity prices will also cause external positions to deteriorate further.

Recently, Egypt responded to this by devaluing the pound in March, and Swanston believes Cairo will need to let the currency fall further. “This will push inflation up, even more, taking it well above the central bank’s target range and prompting another 350bp of interest rate hikes (to 12.75 per cent) by year-end – this is far more tightening than most currently expect.”

James Swanston projected that inflation will increase in Saudi Arabia in the coming months due to the impact of rising global food prices.

“However, we do not expect the headline rate to rise to levels seen elsewhere in the emerging world, particularly as the government has kept a cap on local fuel prices since July last year. Inflation should peak around 2.5 per cent and then fall back to around 1.0-1.5 per cent year-on-year where it will remain throughout 2023-24. If the government does loosen fiscal policy by cutting value-added tax (VAT), this would knock inflation further down,” he added.

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News Network
October 3,2024

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Bengaluru: The Karnataka Food Safety and Quality Department has issued an urgent warning following the discovery of potentially cancer-causing chemicals in cakes sold by certain bakeries across the state.

Recent tests conducted by the department revealed that some cake samples, particularly those with vibrant colors, contain harmful synthetic coloring agents such as Allura Red, a substance known to pose health risks. The findings have raised concerns about the use of artificial colors in bakery products, especially given their potential link to cancer and other serious health conditions.

"We routinely test various food products, and this time, our officials noticed unusually dark-colored cakes on the market," said Srinivas K, Commissioner of Food Safety for Karnataka. "Upon testing, we found that a few cakes contained Allura Red, a synthetic dye associated with health risks."

The use of artificial colors, especially in popular cakes like red velvet and pineapple varieties, is widespread as it attracts customers, particularly children. However, many bakers prefer using natural, safer alternatives, while some opt for synthetic dyes to enhance the cake's visual appeal.

"Most bakeries use permissible, natural colors that are safe for consumption. Unfortunately, a few are resorting to synthetic dyes just to make their cakes more attractive," said a bakery owner from Electronic City, speaking anonymously.

Medical experts are warning that consuming synthetic colors can lead to numerous health issues, including asthma and allergic reactions.

"Some of these artificial dyes are carcinogenic, and prolonged exposure could have serious consequences, especially for children and young adults," cautioned Dr. Vandana G, a private medical practitioner.

While the Food Safety and Standards Authority of India (FSSAI) confirms that only a limited number of samples tested positive for harmful colors, legal action is being taken against the violators.

"There is no need for widespread panic or halting production. We are closely monitoring the situation, and only a few bakeries were found to be non-compliant. Rest assured, appropriate legal measures are underway," assured an FSSAI official. 

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News Network
October 8,2024

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A Palestinian prisoners’ rights group says Israeli forces have abducted a total of 108 journalists during violent raids across the occupied West Bank and the Gaza Strip ever since the regime’s onslaught on the besieged coastal territory started more than a year ago.

The Prisoner Support and Human Rights Association, which is also known as Addameer, said in a statement on Monday that at least 58 journalists remain in Israeli custody, including six female journalists and 22 journalists from Gaza whose identities have been confirmed.

Addameer added that at least 16 of the journalists are being held under administrative detention.

An overwhelming majority of Palestinian prisoners are arrested under a quasi-judicial process known as administrative detention, under which Palestinians are initially jailed for six months. Their detentions can then be repeatedly extended for an indefinite period without charge or trial.

Neither the administrative detainees, who include women and children, nor their lawyers are allowed to see the “secret evidence” that Israeli forces say form the basis for their arrests.

Addameer noted that more than 9,000 orders of administrative detention have been issued since October 7 last year, ranging between new orders and renewals, including orders against children and women.

The report comes as another Palestinian journalist was killed in an Israeli airstrike in the northern Gaza Strip on Sunday, bringing the total death toll of journalists killed since October 7 last year to 175.

The government media office in the Gaza Strip in a statement identified the victim as Hassan Hamad, without giving details about the circumstances of his death.

“We condemn in the strongest terms the targeting, killing, and assassination of Palestinian journalists by the Israeli occupation,” it said.

The media office also called on the international community and international organizations to “deter the occupation and prosecute it in international courts for its ongoing crimes.”

Journalists operating in the Palestinian territory are faced with increased dangers as they report on the conflict amidst Israeli ground assaults and airstrikes, disrupted communications, supply shortages, and power outages.

Israel launched the war on Gaza on October 7 last year, after Palestinian resistance groups carried out a surprise retaliatory operation into the occupied territories.

So far, the Israeli war on Gaza has killed at least 41,909 Palestinians, most of them women, children, and adolescents, and injured 97,303 others.

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News Network
October 2,2024

Yemeni Armed Forces have launched a series of attacks on Israeli military positions deep inside the occupied territories, in solidarity with Palestinian and Lebanese people amid the Tel Aviv regime’s ongoing offensives in the Gaza Strip and across Lebanon.

Delivering a televised statement broadcast live from the capital Sana’a on Wednesday morning, Yemen’s military spokesman Brigadier General Yahya Saree said the country’s missile units had fired three domestically-developed Quds-5 cruise missiles at the strategic installations.

He added that the missiles managed to strike the designated targets precisely, despite the Zionist regime’s attempts to conceal the losses it sustained in the aftermath of the missile attack.

Saree also hailed the Islamic Republic of Iran’s retaliatory attack, dubbed Operation True Promise II, against Israel, stressing that Yemeni Armed Forces are prepared to participate in any joint military operation against the Zionist enemy in support of the Palestinian and Lebanese nations, and in response to Israeli atrocities.

“The continued US and British support for the Israeli enemy will put their interests in the region in jeopardy. Yemeni Armed Forces will not hesitate to expand their military operations against the Zionist enemy and its sponsors until the ongoing aggression against Gaza stops, the siege on the coastal territory is completely lifted, and the attacks on Lebanon come to an end,” he pointed out.

Yemenis have declared their open support for Palestine’s struggle against the Israeli occupation since the regime launched a devastating war on Gaza on October 7, 2023, after the territory’s Palestinian resistance movements carried out surprise Operation Al-Aqsa Storm against the occupying entity.

The Yemeni Armed Forces have said they will not stop their attacks until unrelenting Israeli ground and aerial offensives in Gaza end.

So far, Israel has killed at least 41,638 Palestinians, mostly women and children, and injured 96,460 others in Gaza.

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