Saudi Arabia Inflation July 2021

Saudi Arabia

Saudi Arabia: Inflation plummets in July as VAT effect fades

August 15, 2021

Consumer prices increased 0.20% over the previous month in July, marginally stronger than June’s 0.15% rise. July’s print reflected higher prices for food, education and recreation and culture.

In July, inflation dipped to 0.4% from 6.2% in June. The stark fall in inflation was due to the fading impact of the value-added tax rate, which was increased from 5% to 15% back in July 2020. Meanwhile, annual average inflation decreased to 5.2% in July, down from 5.7% in the previous month.

FocusEconomics Consensus Forecast participants expect inflation to be 3.0% in 2021, which is unchanged from last month’s projection. The panel sees inflation averaging 1.9% in 2022.

Author:, Economist

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Saudi Arabia Inflation Chart

Saudi Arabia Inflation July 2021

Note: Year-on-year and month-on-month variation of consumer price index in %.
Source: General Authority for Statistics (GAS).

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