We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Factors affecting inflation rate Bahrain - Assignment Example

Comments (0)
The rate of inflation in Bahrain Name Institution The rate of inflation in Bahrain Bahrain relies on oil as the main source of income. The national income of Bahrain depends mostly on oil since it is its main source of revenue. In addition, more than thirty percent of the oil found in Bahrain is exported in order to earn the country revenue…
Download full paper
Factors affecting inflation rate Bahrain
Read TextPreview

Extract of sample
Factors affecting inflation rate Bahrain

Download file to see previous pages... Throughout the globe, significant gains were made in fighting against increased inflation during the 1990s and there was hope that a new period of low inflation had started. Countries in Europe and Latin American succeeded in fighting inflation from higher digits to single digits, and maintaining the stability of prices of consumer goods and services. In 2000, increased inflation started to haunt the world but it was stopped in 2009 by the financial crisis (Calvo & Carmen, 2002). This paper discusses factors affecting the rate of inflation in Bahrain. Inflation in Bahrain is driven by many factors and the exchange and interest rate laws that central bank in Bahrain implement, and the supply of money. In Bahrain, the prices of goods especially food prices affect the inflation of Bahrain. This is because increase in prices of foods and beverages implies that the country would have increased inflation this is because transportation of such goods to the markets will be costly. Further, the increase in prices of fuel implies that the prices of food stuffs increase since high prices of fuel controls the market. It is important to note that the prices of commodities are affecting the rate of inflation in Bahrain because commodities in Bahrain are widely imported and all prices of imported goods affect inflation. However, from the calculations, it can be deduced that changes in commodity prices are not just a proxy for changes in the entire import prices (Calvo & Carmen, 2002). From the data presented, it is rational to argue that another factor affecting inflation in Bahrain is the inflation in previous years. For instance, the momentum of inflation on goods such as foods and beverages and services such as medical care is well recorded and they result because of factors that incorporate overlapping contracts and adaptive inflationary expectations. Further, the growth of money in Bahrain because of paying utility bills such as rent, electricity and water has a direct effect on inflation of Bahrain since there is no purpose to expect important changes in the money velocity. It is also significant to note that the growth rate in Bahrain is influencing the rate of inflation in the sense that it is affected credit issues whereby increase in the growth rate of Bahrain has negative impact on inflation. The central bank played a very important role by decreasing the growth rate to about six percent in the year two thousand and eight. The market was very stable in that prices of commodities such as food, beverages, tobacco and services such as medical care were affordable. This in turn increased the market value of these goods and services (Chen & Scott, 2004). The trend of the economy of Bahrain affects her inflation. For instance, from the calculations, the trend in Bahrain revolves at the rate at which the world market is directed in that it sets its prices in comparison to other countries. For instance, the U.S economy is in direct contact with the economy of Bahrain. This illustrated that the movement of the trend was downward. This in turn shows that, the economy of Bahrain is positively affected rather than being negatively affectively which reduces inflation rate. Since inflation is defined as the increase in buying power of money, the easiest way to calculate the rate of inflation is by listing the prices of services and goods over the stated years commonly known as the price ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
Pain and the Role of the Nurse in Helping Patients Manage Factors affecting it
Pain is a crucial aspect of people’s lives and therefore the way it is managed is important in order that patients or people in general get to overcome its effects. The nurse also plays an essential part in this whole aspect of pain management. It is mandatory that a good strategy is employed in managing the patient’s pain.
8 Pages(2000 words)Assignment
Factors affecting inflation rate Oman
year 2000=100) Year Components Food Beverage and Tobacco Education Recreation and Entertainment Medical care Clothing & Footwear Housing Furniture Rent Electricity, water and fuel Transport and Communication Other product and services 2002 0.100604 0.2 -10.9658 -1.126 -2.0576 -0.801603 0.404448938 2.82542886 2003 0.904523 -0.798403 1.01695 -0.518 -2.1008 -0.30303 -0.50352467 3.72914622 2004 1.195219 -0.301811 0.89485 0.3122 -0.1073 -0.303951 1.012145749 3.2166509 2005 4.035433 -0.100908 0.11086 0.6224 0.42965 0 1.503006012 3.57470211 2006 5.77105 1.313131 0.77519 -0.206 1.06952 1.8292683 1.776900296 10.8849558 2007 10.8229 4.087737 0.32967 1.2397 3.06878 6.3872255 0.387972842 7.74142059 2008
5 Pages(1250 words)Assignment
Factors Affecting Trade of Sugar
Sugar is a protected commodity in the world market. It is affected by government interventions, price changes, production, and a growing market for sugar substitutes. Sugar is produced in 120 countries with an annual production of 165 million tonnes a year.
4 Pages(1000 words)Assignment
Pulse Rate
You can check an individual's pulse rate by measuring its rate and rhythm. Pulse is the number of heartbeat per minute (Habits of Heart, 2000). Pulse rate is determined to test how well your heart is. It is the pumping of the heart with blood that causes pulse rate.
6 Pages(1500 words)Assignment
Prepare a report on PEST analysis for Apple. look at how various micro and macro factors are affecting your chosen company
Firstly, globalisation has a positive impact on the performance of the company. Apple Inc., being the king of technology in the U.S, also reaches different parts of the world as the icon of latest technology. The term globalisation mainly represents
2 Pages(500 words)Assignment
Bahrain History 2
As a result it can be said that Bahrain has had to see two constitutions in the recent past. Like many other countries of the Middle East and Arab world, Bahrain remained under the influence and as a colony of
4 Pages(1000 words)Assignment
Factors Affecting Customer Satisfaction
The author states that the technology’s management ensures quality for its products through interaction with clients in social media. It avoids using drivers who attract negative feedback from customers. Even though the technology-based service provider has been facing controversies with its users.
2 Pages(500 words)Research Paper
Conduct research on the economic performance of ONE (1) country over the last ten years, from 2004 to 2013, applying the macroeconomic indicators of real GDP, real GDP growth rate, real GDP per capita , unemployment rate and inflation rate to argue whe
This paper mainly concentrates on the postwar period of economic development (1945-present) of Japan. High levels of growth in the last decade were observed in a number of industrial sectors, that include agriculture, automobile mining, and petroleum exploration. Economic trends in these industries, as well as in labor market are considered.
4 Pages(1000 words)Assignment
Exchange Rate
In order for Kerr Inc. to mitigate the adverse fluctuations in the foreign exchange market, the company should manage the foreign exchange risk. The company can manage
1 Pages(250 words)Assignment
The 1947 to 1991 phase and the one after 1991(Picardo, 2015). The Indian economy was faced with internal issues that included; war, religious riots, shattered economy, poverty and high illiteracy levels. These issues were pivotal in shaping the
2 Pages(500 words)Assignment
Let us find you another Assignment on topic Factors affecting inflation rate Bahrain for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us