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FINANCIAL NEWS
Saudi inflation seen to accelerate in coming months
14 Jun 2010
(MENAFN) Inflation in Saudi Arabia is expected to accelerate further in the coming few months, after recording a one-year high of 5.4 percent year-on-year in May on rents and food prices, Reuters reported.
Price pressures are seen rising again this year as oil exporters recover; however, inflation is expected to stay in single digits across the Gulf region.
Inflation in Saudi Arabia started picking up again after slowing to a two-and-a-half year low of 3.5 percent in October. It stood at 4.9 percent in April, which is still well below a record high of 11.1 percent seen in July 2008.
Saudi consumer prices now reached the highest level among six Gulf Arab oil producers.
Month-on-month, prices grew 0.6 percent in May, a seven-month high, after a 0.3 percent increase in April, official data showed. Housing costs, which account for 18 percent of the basket, climbed 1.1 percent month-on-month in May, their fastest pace in the last 11 months, and were up 9.4 percent on the year.
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