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Yemen inflation soars to 14.2%

Yemen, the second poorest Arab state after Mauritania, has said its annual inflation climbed to a 15-month high of 14.2% in May, mainly due to increases in food, tobacco and qat prices, while June foreign currency reserves fell to their lowest level since August 2012, Reuters has reported. Inflation fell from a peak of 25% in October 2011 to as low as 5.5% last November, as the economy started picking up after two years of political unrest. But price growth rebounded again to hit 14% in April. Annual price growth of tobacco, cigarettes and qat accelerated to a 15-month high of 27.1% in May from 26.6% in the previous month.