Inflation — one of the most familiar words in economics — has plunged countries into long periods of instability. Central bankers often aspire to be known as “inflation hawks.” Politicians have won elections with promises to combat inflation, only to lose power after failing to do so. What, after all, is inflation, and why is it so important?
In simple words, inflation is the rate of increase in prices over a given period of time. Broadly speaking, it measures the overall increase in prices or the increase in the cost of living in a country. However, it can also be more narrowly calculated—for certain goods, such as food, or for services, such as a haircut, for example. Whatever the context, inflation represents how much more expensive the relevant set of goods and/or services has become over a certain time period.
Here are some of the views from the experts about how inflation is effecting the Gulf region.
