Saudi Arabia: Inflation ticks down in August
September 16, 2021
Consumer prices increased 0.07% over the previous month in August, weaker than July’s 0.15% rise. August’s print reflected falling prices for transport, and clothing and footwear relative to the previous month, which was somewhat offset by higher food and beverage prices.
In August, inflation ticked down to 0.3% from 0.4% in July. Subdued inflation in recent months was due to the fading impact of the value-added tax rate, which was increased from 5% to 15% back in July 2020. Meanwhile, annual average inflation decreased to 4.7% in August, down from 5.2% in the previous month.
Author: Steven Burke, Economist