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FINANCIAL NEWS
Saudi inflation eases to 5.8% in October
07 Nov 2010
(MENAFN) Saudi Arabian Monetary Agency (SAMA) announced that the Kingdom�s annual inflation rate declined slightly to 5.8 percent in October, compared to the 5.9 percent rate a month earlier, The Saudi Press Agency reported.
Inflation rates in the biggest Arab economy and the world’s top oil exporter are continuing in a steady decline from an 18-month high of 6.1percent in August.
Food prices rose by 1.6 percent, reaching a 26 percent rate, while housing costs increased by 0.6 percent, the central bank said.
According to economists, inflation is forecasted to increase within the upcoming months up until the second quarter of 2011, mainly due to the peg of the Saudi riyal to the declining dollar. This has a negative effect, lowering the value of the riyal which results in rising costs.
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