May witnessed decrease in inflation up to 10.50 %

SANA'A, July 24 (Saba)- The
inflation in Yemen decreased up to 10.50 percent in end of May compared to 17.69
percent in January
of 2009, because of low in price of food and drinks, according to official statistics.

Since beginning of this year, the inflation has witnessed decrease, which would
encourage the Central Bank of Yemen (CBY) to reduce price of profits twice on
disposes last
May based on recommendations of the monetary policy committee.
The CBY's reduction aims at pushing other commercial banks to invest their surplus
by granting loans and offering further insurance facilities for the investment
projects
in order to achieve stability in prices.
In 2008, overall inflation showed a marked increase.
Data released by the Central Statistics organizations CSO indicate an average
inflation rate for 2008 reaching about 19 percent as compared to about 8 percent a
year ago.
Monthly inflation rates peaked in March 2008 and then started to moderate towards
the year-end. The increase in 2008 reflects the impact of rising global commodity
prices,
especially for food, in the first half of the year.
The report of World Bank showed that inflation in Yemen has followed trends in
global price indices, although with a lag especially where domestic retail food
prices are
concerned. International commodity prices witnessed a sharp correction during the
second half of 2008, falling by 20 percent (food) to 40 percent (nonenergy and
metals).
The inflation rate has witnessed a steady decline in recent months.
For the first two months of 2009, the inflation rate continued the downward trend of
the previous four months. Compared to the same period of last year, the monthly
rates
for January and February of 2009 reached 3.9 and 2.1 percent, respectively.
Meanwhile, in the international commodity markets, prices remained relatively stable
with the January-February average for 2009 showing virtually no change from the same
period last year.