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Saudi Arabia inflation rate to reach 3.9 percent

25 Feb 2016

(MENAFN) Saudi consumer price enhanced to 4.3 percent yearly in Jan this year, as higher energy prices contributed to a notable increase in the housing and utilities.

Moreover, higher energy and transport costs for other business will lead to higher prices for consumer goods, which will make pressure on other components of the CPI basket.

In addition, it is predicted that higher prices will have negative effect on consumer spending, in the form of lower disposable income, which would cut any price pressures.

Accordingly, the kingdom’s estimate of core inflation, which excludes food and rent but involves transport, increased to its highest level reaching 3.7 percent.

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