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Saudi inflation rises to 6.1% in August

07 Oct 2010

(MENAFN) Riyadh-based Jadwa Investment said in its latest report that Saudi Arabia’s inflation rose to 6.1 percent in August, although non-food inflation dropped for the first time since March, Reuters reported.

The specialized finance house said that the only other component of the cost of living index that rose during August was rents, fuelled by the current undersupply of housing in the Kingdom.

However, Jadwa said that the recent increase was in line with the traditional hikes that take place during the month in the Gregorian calendar during which Ramadan starts.

At the end of September, Saudi Arabiaï¿½s central bank governor described the current high level of inflationary pressure as ”worrying”, although he maintained that monetary policy could do little to arrest the trend.

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