Saudi Arabia

    Saudi Arabian inflation accelerated to a record 6.5 percent in December, increasing pressure on the largest Arab economy to revalue its currency. The inflation rate rose from 6 percent in November, the Ministry of Economy and Planning said. Inflation averaged 4.1 percent in 2007, up from 2.2 percent in 2006, the ministry said. Gulf states, including Saudi Arabia and the United Arab Emirates, are under pressure to revalue their currencies against the falling dollar to arrest rising inflation, which has accelerated to records in all six Gulf Arab states in the last 12 months. The Saudi Ministry of Economy did not provide a breakdown of components for the cost of living index. (Bloomberg)

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