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FINANCIAL NEWS
Oman subsidizes essential food to deal with inflation
14 Dec 2011
(MENAFN) Omani trade ministry official said that the Cabinet decided to subsidize food staples to offset inflation in the Gulf country, Reuters reported.
He explained that the government will spend USD109 million to build warehouses across the country to store food.
Annual inflation in the sultanate rose to 3.8 percent in October, according to official data.
In November, the central bank’s executive president expected inflation to reach 4 percent this year, while the economy was likely to grow 5 percent.
He also said that the central bank was not worried about the current inflation, but that it would monitor it very closely.
Earlier this year, Oman saw street protests demanding higher wages, fairer access to government jobs and an end to graft.
Sultan Qaboos bin Said vowed a USD2.6 billion spending package and creation of 50,000 public sector jobs.
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