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FINANCIAL NEWS
Saudi inflation in 2010 down to 5.3%
09 Feb 2011
(MENAFN) Saudi Central Department of Statistics reported a decrease in the country’s inflation rate to 5.3 percent in January of 2010 compared to 5.4 percent in December of 2009, thus registering the lowest rate in the past nine months, reported Arabian Business.
Consumer prices are expected to increase even more in 2011 as food prices are increasing globally. The statistics department said that in addition to food prices, increasing rents and transport costs in the Kingdom would contribute to higher inflation rates.
Central bank governor in the Kingdom said that the Kingdom fears global rise in food prices in 2011, as it the country depends on imported food, would lead to even higher inflation rates.
It is worth noting that the Saudi economy expanded by 4.3 percent in 2011 compared to 3.8 percent growth in 2010 due to an increase in oil prices as well as more government spending.
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