Saudi Arabia: Inflation decreases slightly in October
November 15, 2022
Inflation moderated to 3.0% in October, easing slightly from September’s 3.1%. Looking at the details of the release, the change in prices for food and non-alcoholic beverages was largely steady in October, while prices for clothing and footwear declined at a faster pace. Meanwhile, housing and utilities prices were largely steady.
Annual average inflation rose to 2.2% in October (September: 2.0%).
Lastly, consumer prices increased 0.19% from the previous month in October, which was below the 0.27% increase logged in September. October's result marked the weakest reading since May.
Our panelists see inflation easing further in Q4. The government’s cap on petrol prices, together with higher interest rates and weakening commodity prices in recent months, should reduce inflation. That said, supply bottlenecks and demand-pull factors remain upside risks.