"This puts the annual inflation for last year at 4.5 per cent-year-on-year in line with our forecasts. For 2013, we expected inflation to be mainly driven by rent and housing related services as well as food prices," said Jadwa Investments in a report.
"While the latter is expected to likely be less of a concern as international food prices are slowing down, we expect rent and housing related services to continue the current gradual downward trend," it continued. "Government housing initiative is likely to reduce pressure on such component, but we do not expect such effect to materialise before next year. As such, we expect inflation in 2013 to reach 4.3 per cent year-on-year down from 4.5 per cent last year.
