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FINANCIAL NEWS
Saudi’s inflation fall helps to cut huge budget deficit
24 Jan 2017
(MENAFN) A decline in Saudi Arabia’s inflation rate, to its lowest level in more than 10 years is good for the kingdom’s efforts to cut a huge state budget deficit.
Furthermore, annual consumer price inflation slowed to 1.7 percent in Dec from 2.3 percent in Nov, as stated the Central Department of Statistics.
In addition, the decline was due to lower food prices, which dropped 4.3 percent from a year earlier, while the kingdom imports are basic foods.
Meanwhile, the kingdom aims to introduce a 5 percent VAT next year to shrink its deficit more, while inflation could drop more this year.
M
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