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FINANCIAL NEWS
Inlfation to go down on long-run: Saudi govt
10 Apr 2011
(MENAFN) Saudi finance minister Ibrahim Al Aassaf said that the large subsidies ordered by King Abdullah would help ease inflation on the long-term, as they would boost supply in the housing sector, which would subsequently decrease rents, reported Gulf Daily News.
The minister added that high rents are the major contributor to the Kingdom’s current inflation rate. Especially that around fifty to seventy percent of Saudis rent their homes as their salaries could not afford mortgages.
The minister stated that even though some time should pass before impact could be seen, large spendings would definitely be effective.
It is worth noting that Saudi Arabia’s king Abdullah ordered handouts totaling to USD93 billion last month, in addition to an earlier USD37 billion announced less than a month earlier.
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