Gulf Inflation Hits Record on Soaring Food Prices

ABU DHABI: Inflation in key Gulf nations surged to multi-decade highs this year on relentless rises in food and rental costs, new data showed yesterday, posing new challenges to the region’s central banks.

Inflation in Saudi Arabia in July accelerated to 11.1 per cent, its highest level in at least 30 years, while in Abu Dhabi, the biggest member of the UAE federation, prices rose 12.9pc in June, according to the latest data.

Inflation in Gulf Arab states has raced ahead on record revenues from windfall oil profits and massive public spending plans designed to transform the desert states into centres of finance, tourism, manufacturing and education. Read more…

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