Yemeni Cabinet admits price hikes [Archives:2006/986/Local News]

SANA'A, Sept. 25 ) At its weekly meeting last Monday, the Yemeni Cabinet admitted to price hikes of basic commodities. It attributed the increases to merchants who exploit the advent of Ramadan to raise the prices of highly demanded commodities.

According to Al-Shoura.net, economic indicators point out that the recent price hikes were accompanied by significant monetary inflation due to General People's Congress (GPC) political expenditures amounting to YR 10 billion, which will result in price increases at the far end of the scale and further devalue the Yemeni Riyal against free currencies like the U.S. Dollar.

Due to government expenditures on the GPC candidate's recent electoral campaign, some economic observers expect price increases of between 50 and 100 percent on all commodities. Further, such expenditures have resulted in significant monetary inflation to the degree where a YR 1,000 bank note is more available than a YR 100 bank note.
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