Most of us, the working class will feel the pinch of inflation. It is very very bad due to the world current economic situation and the America subprime mortgage and financial crises can bring all of us down.
"The world shouldn't have to bear the burden for America's lapses," read a headline on Spiegel Online.
Reality wise, we are already in financial turmoil. The UAE Central Bank recently announced a Dh50 billion emergency funding facility for banks to address the shortage of funds available in the market. In addition, the authority said in a statement that additional resources would be facilitated "for providing further support to banks operating in the UAE if required".
According to Malaysiakini, Malaysia's Inflation jumps to 27-year high.
The inflation rate has jumped to a 27-year high of 8.5 percent in August, driven by the escalating cost of food and fuel, according to official data released today.
"The result was slightly higher than expected but the central Bank Negara would not raise interest rates to ensure growth," said Wan Suhaimi Saidi, an economist with Kenanga Investment Bank.
Here in the Gulf, the inflation is always higher than Malaysia. But the income is higher here as well, maybe four times more than Malaysia and the region should perform well as it continued to diversify and benefit from massive official reserves and sovereign wealth funds.
Arabian Business reported, Saudi inflation not set to ease until '09.
Inflation in the kingdom eased from a peak of at least 30 years to 10.9 percent in August, as gains in key components - rent and food prices - steadied in the largest Arab economy, official data showed on Sunday.
"The inflation correction could happen in the first quarter of 2009 instead of the second half of 2008," Saudi Arabia's Central Bank Governor Hamad Saud Al-Sayyari said.
UAE inflation set to fall to 7% by 2010 - report,
The inflation rate in the UAE is predicted to fall from last year's 11.1 percent level to seven percent in 2010, according to a new report.
Inflation is expected to rise to 12 per cent by the end of this year before dropping to eight per cent in 2009, said the monthly Analysis of Economic and Financial Developments study by Standard Chartered Global Focus.
UAE inflation surges to 13% - Merrill,
Inflation in the UAE hit 13 percent in the first half of this year on the back of surging housing and food costs, Merrill Lynch said in a report on Tuesday.
The US investment bank said inflation, which officially stood at 11.1 percent in 2007, is still a “major problem” for the Gulf state and will only be solved through more stringent monetary policy.
Merrill said the UAE’s currency peg to the weak US dollar and negative real interest rates, combined with the country’s booming economy, continue to pile on inflationary pressure.
Qatar inflation rockets to 16.5%
Annual inflation in Qatar rose to 16.59 percent in the second quarter from 14.75 percent in the first quarter, official data showed on Tuesday.
The consumer price index of the world's biggest exporter of liquefied natural gas hit 172.39 points at the end of June compared with 147.86 points a year earlier, the Qatar Statistics Authority said in a statement.