Saudi Arabia: Inflation remains steady in April
Inflation was stable at March’s 2.7% in April. April’s result represented the joint-lowest inflation rate since July 2022. Looking at the details of the release, housing and utilities prices rose at a quicker pace in April compared to the previous month, while food prices rose at a slower pace.
Annual average inflation rose to 2.9% in April (March: 2.8%).
Finally, consumer prices rose 0.39% over the previous month in April, accelerating from the 0.06% increase recorded in March. April’s uptick marked the highest reading since July 2022.
Our panelists see inflation easing this year. The government’s petrol price cap, along with higher interest rates, should cool inflation. That said, supply bottlenecks and demand-pull factors remain upside risks.