Saudi Arabia Inflation March 2017

Saudi Arabia

Saudi Arabia: Decline in consumer prices softens in February

March 21, 2017

Consumer prices rose 0.3% in February compared to the previous month, which contrasted January’s 0.2% decrease. February’s monthly increase mainly reflected higher prices for food and beverages, transport and housing, water, electricity and gas.

On an annual basis, consumer prices fell 0.1% in February, less than January’s 0.4% drop. January’s print had represented the first year-on-year decline in prices in over a decade. Meanwhile, annual average inflation fell from 3.1% in January to 2.7% in February, hitting an 11-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 3.1% in 2017, which is unchanged from last month’s projection. For 2018, the panel sees inflation averaging 3.8%.

Author: Ricard Torné, Lead Economist

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Saudi Arabia Inflation Chart

SaudiArabia Inflation February 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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