Financial Times FT.com

Inflation rise takes gloss off Riyadh's oil bonanza

By Andrew England and Roula Khalaf in Riyadh

Published: November 14 2007 02:00 | Last updated: November 14 2007 02:00

For the past two decades, Saudis have enjoyed a period of extremely low inflation as the economy had stood virtually still after the heady days of the oil boom of the 1970s and early 1980s.

But as the kingdom reaps the benefits of record oil prices once again, it is having to come to terms with rising food and rent prices that risk widening the gap between rich and poor and taking the shine off economic expansion.

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