The annual inflation rate in Saudi Arabia eased to 9 percent in December, down from 9.5 percent a month earlier, but rents and food costs continued to soar, official data showed on Sunday. The rents index, which includes fuel and water, surged 17.7 percent and food costs rose 11.3 percent, the Central Department of Statistics and Information revealed. Inflation in the Kingdom ran in double digits throughout most of 2008 but is likely to decline this year in tandem with an expected economic slowdown. Two of the major groups forming the record figure for the cost of living registered a drop in their indices. The groups include foods and beverages with 0.3 percent and household furnishing with 0.2 percent, Saudi Press Agency said. Meanwhile, the Ministry of Economy and Planning has said that the general record figure index for wholesale prices dropped by 5.8 percent from 149.3 percent in the third quarter of 2008 to 140.6 percent in the fourth quarter. The ministry attributed this drop to the decrease witnessed by six major sectors forming the record figure for wholesale prices. They include chemicals and related products sector with 32.9 percent; manufactured commodities classified according to materials with 8.6 percent; raw materials sector except fuels with 7.4 percent; other commodities sector with 1.4 percent; machinery and transportation machinery with 1.3 percent; and various manufactured commodities with 0.6 percent. Two major sectors registered an increase in their record indexes – animal and vegetable oils and fats by 4 percent and foodstuff and live animals sector by 1 percent. The ministry pointed out that mineral fuels and related products sector and beverages and cigarettes sector did not register any change. The ministry said last year's fourth quarter in comparison to the same quarter in 2007 registered a 3.3 percent rise in the general record figure index for wholesale prices in the Kingdom. __
