"Inflation Gives Saudis Food for Thought" "My boss sent me back to return the milk - it's too expensive," said the Pakistani driver for a middle-class Saudi family at the checkout counter of the Al-Othaim supermarket....Saudi Arabia is enjoying an unprecedented economic boom ...as sectors [have] increased activity to meet the big internal demand." www.ft.com,1/18/2008
The type of inflation described in the story

Question

Quizplus · Accepted Answer

The article describes inflation in Saudi Arabia as being the result of a boom in the economy, specifically an increase in internal demand pushing up prices. This is consistent with the start of inflation due to an increase in aggregate demand.

"Inflation Gives Saudis Food for Thought" "My Boss Sent Me