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FINANCIAL NEWS
Saudi inflation to slow down: Sama
23 Nov 2010
(MENAFN) The Saudi Arabian Monetary Agency (SAMA) said that the Kingdom’s high rate of inflation may ease further in the final quarter of 2010, Reuters reported.
Inflation in the Kingdom has eased since touching an 18-month high of 6.1 percent in August, but at 5.8 percent in October remains highest among the Gulf oil producers.
The central bank said it expected housing price pressures to decrease as additional supply enters the market.
The Kingdom�s toolbox for tackling inflation is limited by its currency peg to the US dollar, with fiscal policy its main tool for steering the economy.
Economists believe that inflation will climb going into next year with the weak dollar adding pressure, while budget spending will overshoot the government�s target.
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