New York - The high price of oil will allow the Iraqi government to rack up a budget surplus of 79 billion dollars by year's end, a report by the Government Accountability Office, quoted in Wednesday's New York Times said.

The report by the US federal oversight agency estimates that Iraqi oil revenue from 2005 through the end of this year will amount to at least 156 billion dollars, but that the government was spending a pittance on reconstruction projects that were still being funded by US taxpayers.

The report is likely to increase the debate in the US about the continuing cost of reconstruction, costing some 48 billion dollars since 2002.

Hanoi - Vietnamese government officials said Wednesday they would punish anyone spreading rumours of upcoming gas price hikes, after such hearsay caused panic buying at Ho Chi Minh City gas stations on Tuesday.

Deputy Minister of Industry and Trade Nguyen Thanh Bien said his ministry had asked city authorities to investigate what organizations or individuals had started the rumours.

Word that retail gasoline price would rise from 19,000 dong (1.10 dollars) to 25,000 dong per litre started at about 4 pm in Ho Chi Minh City's Binh Tan district and quickly spread to the rest of the city, according to city vice chairwoman Nguyen Thi Hong.

Manila - The Philippines inflation rate in July surged to 12.2 per cent - the highest since December 1991 - amid continued increases in prices of basic commodities, the government said Tuesday.

The National Statistics Office said the July rate was up from 11.4 per cent in June. Inflation in July last year was 2.6 per cent.

"This was the highest rate since December 1991 (when the inflation rate was 13.2 per cent)," the agency said. "Higher annual inflation rates were registered in all commodity groups."

"The overall annual inflation rate for food alone further climbed to 18.6 per cent in July from 17.4 per cent in June," it added.

Wellington - The New Zealand economy is in a recession, having contracted for two successive quarters, the Treasury said Tuesday in its monthly review of economic indicators.

The report backed consistent speculation of a recession by analysts, though this will not be officially confirmed until Statistics New Zealand releases economic data for the June quarter next month.

This is expected to show that the New Zealand economy registered negative growth in the quarter following a contraction in the first three months of the year.

Bangkok- Thailand's inflation in July rose to 9.2 per cent year-on-year, the highest rate in a decade, the commerce ministry announced Friday.

Pairoh Sudsawang, Permanent Secretary for Commerce, said the Consumer Price Index in July was up 9.2 per cent compared with July, 2007, and up 0.3 per cent compared with last month's rate.

In June, inflation rose to 8.9 per cent, year-on-year, while in May it was 7.6 per cent.

Despite the steady rise over the past three months, Pairoh projected that the rate for all of 2008 will be about 6.6 per cent.

With international oil prices now on a gradual decline, Thailand's inflation rate is expected to lessen in August, the Kasikorn Research Centre (KCR) said.

Berlin - German retail sales fell sharply in June, data released Friday showed, adding to signs that consumers in Europe's biggest economy are curtailing spending in the face of rising inflation and growing economic uncertainties.

The nation's statistics office said seasonally adjusted retail sales fell by 1.4 per cent month on month in June and by 3.9 per cent compared to the same month last year.

Analysts had expected June German retail sales to drop by a more modest 0.5 per cent month on month and by 0.8 per cent on the year.