Saudi Arabia: Inflation falls to lowest level since February 2022 in August
Inflation came in at 2.0% in August, down from July’s 2.3%. August’s figure marked the lowest inflation rate since February 2022. The moderation was largely driven by slower growth in prices for food and non-alcoholic beverages. In addition, price pressures for clothing and footwear decreased at a sharper pace. Moreover, prices for transport grew at a more subdued pace.
Annual average inflation edged down to 2.8% in August (July: 2.9%).
Finally, consumer prices rose 0.03% from the previous month in August, coming in below July’s 0.09% rise. August’s result marked the weakest reading since February.
The Saudi authorities have tightly controlled inflation this year thanks to energy subsidies and rising interest rates. Our panelists expect price pressures to remain low for the remainder of this year. Rapidly growing demand in the non-oil sector poses an upside risk.