Saudi Arabia Inflation April 2017

Saudi Arabia

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.

FocusEconomics Consensus Forecast participants expect inflation to average 2.3% in 2017, which is down 0.7 percentage points from last month’s projection. For 2018, the panel sees inflation averaging 3.7%.

Author: Ricard Torné, Lead Economist

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Saudi Arabia Inflation Chart

SaudiArabia Inflation March 2017

Note: Year-on-year and month-on-month variation of consumer price index in %.
Source: Central Department of Statistics & Information (CDSI).

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