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FINANCIAL NEWS
Saudi inflation rises to 6% in July
24 Aug 2010
(MENAFN) The Saudi Arabian Monetary Agency said that the kingdom’s inflation rate increased for a sixth month in July to 6 percent as the costs of food and rent rose in the Arab world�s biggest economy, Reuters reported.
Saudi Arabia�s central bank said earlier this month that it anticipates the cost of living will pick up in the third quarter as growth accelerates.
The Saudi Arabian government forecasts an expansion of more than 4 percent this year after 0.6 percent in 2009, a seven-year low.
The costs of fuel, rent and water will contribute to inflation, though the pressures will not be acute, the Saudi Arabian Monetary Agency said in a report released earlier this month.
The central bank last year cut the repurchase rate to 2 percent, the lowest since 2004, and the reverse repurchase rate to 0.25 percent.
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