Canada's Justin Trudeau cites 'internal battles' as he ends nine-year run    North Korea says new hypersonic missile will 'contain' rivals    Russia claims capture of Ukrainian front-line town    Five dead as huge winter storm grips swathe of US    Rabigh waterspout declared the strongest of its kind    67% surge in commercial registrations in 4Q 2024    Heavy rain hits Makkah, Madinah and Jeddah Al-Shafiyah in Madinah and Al-Basateen in Jeddah record highest rate of rainfall    Saudi FM and U.S. envoy to Lebanon discuss regional issues    PIF announces $7 billion inaugural Murabaha Credit Facility    Golden Globes 2025: France's 'Emilia Pérez' wins big, as 'The Brutalist' nabs major awards    Alabama nursing student wins Miss America 2025    New York first US city to have congestion charge    Demi Moore continues comeback with Golden Globe win    Dakar and CATRION team up to elevate catering experience at Dakar Rally Saudi Arabia 2025    Projected funding needs for 2025 estimated at SR139 billion as per annual borrowing plan    Bahrain stage dramatic comeback to defeat Oman and claim Khaleeji Zain 26 title    Elon Musk confirms Starlink application to launch internet services in Pakistan    AC Milan beats Juventus 2-1 to reach Supercoppa final against Inter    Ronaldo eyes AFC Champions League glory with Al Nassr    Meghan announces new Netflix lifestyle show    Order vs. Morality: Lessons from New York's 1977 Blackout    India puts blockbuster Pakistani film on hold    The Vikings and the Islamic world    Filipino pilgrim's incredible evolution from an enemy of Islam to its staunch advocate    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Kingdom's inflation rises to 5.5%
Published in The Saudi Gazette on 21 - 06 - 2009

Saudi Arabia's annual inflation rate rose for the first time in seven months to hit 5.5 percent in May due mainly to a surge in food prices, official data showed on Saturday.
The cost of living index stood at 121.3 points on May 31 compared with 115 points a year earlier, the Central Department of Statistics said on its website.
Inflation in April was 5.2 percent, the lowest rate since September 2007.
On an annual basis, the increase in food and beverage index accelerated to 2.4 percent in May, up from 1.6 percent in April, the data showed.
Last year, when inflation peaked at more than 11 percent in July, food and beverage costs in Saudi Arabia had surged an annual 16 percent.
The annual rise in rental price however eased to 17.7 percent in May, down from 18.8 percent in April, the data showed. Before May, inflation rates have been declining rapidly in the largest Arab economy as commodity prices slumped and a stronger US dollar helped reduce import costs for the Kingdom, which pegs its riyal to the dollar.
The recent fall in the value of the greenback coupled with an increase in oil prices is beginning to change this picture, said John Sfakianakis, chief economist at HSBC's Saudi affiliate.
“Inflation could be close to reaching its bottom. The dollar depreciation is hitting import costs and the recent surge in oil prices is impacting the prices of other commodities,” he said.
The start Ramadan is expected to further spike food prices with a surge in demand, Sfakianakis said.
“We are seeing a leveling off of inflation on the way down,” he said. “The decline in global commodity prices has ended. We are also seeing a continuation of pressure on rental and food prices.” EFG-Hermes expects inflation to average 4.8 percent this year.
Saudi Arabia said last year it would invest around $400 billion in the next five years, mainly to enhance infrastructure in the Kingdom of around 25 million people.
These projects mean that Saudi Arabia continued to experiment a high housing demand with an increase in imported labor adding to pressures generated from a rapid demographic growth of the native population, Sfakianakis said.
“There is a limited rise in housing supply. There has been an increase in the number of expats over the past six months opposite to what happened in other Gulf Arab countries,” Sfakianakis said.


Clic here to read the story from its source.