Saudi Arabia: Consumer prices increase for the second consecutive month in January
Consumer prices ticked down 0.1% over the previous month in January, contrasting December’s 0.1% increase. The print mainly reflected lower prices for housing and utilities, and clothing and footwear.
In January, inflation increased to 0.4% from 0.2% in the month prior. Meanwhile, the annual average variation in consumer prices declined 1.0% in January, compared to the 1.2% decrease in December.
This year inflation is expected to edge higher on the back of stronger economic activity, driven mainly by a resilient non-oil private sector. Moreover, a 50% levy on a selection of sweetened beverages in December last year should also stoke food prices going forward.