Saudi Arabia: Consumer prices record largest drop in over a decade in March
April 18, 2017
Consumer prices fell 0.2% in March compared to the previous month, which contrasted February’s 0.3% increase. March’s monthly decrease mainly reflected lower prices for food and beverages, clothing, and housing, water, electricity and gas.
On an annual basis, consumer prices fell 0.4% in March, more than February’s 0.1% drop. March’s print represented the largest drop in prices since 2001. Meanwhile, annual average inflation fell from 2.7% in February to 2.3% in March, hitting a 15-month low.
A relatively weak economy and a strong U.S. dollar are behind the recent drop in annual consumer prices. However, inflation should return in the coming months on the back of the government initiatives to shore up private activities and planned increases in regulated prices.