Saudi Arabia Inflation January 2016

Saudi Arabia

Saudi Arabia: Inflation soars in January on subsidies removal

February 23, 2016

In January, consumer prices shot up 1.93% over the previous month. The print largely overshot the 0.07% increase tallied in December and marked the highest reading in five years. By categories, the increase mainly reflected much higher prices for transport, housing, water, electricity and gas as well as for health. That said, January’s astonishing rise was the result of the subsidy cuts in energy and some utilities prices implemented in January.

Inflation came in at 4.3% in January, which was above December’s 2.3% and marked an over-four-year high. Annual average inflation in January rose from December’s 2.2% to 2.4%, the highest rate in seven months.

FocusEconomics Consensus Forecast participants expect inflation to average 2.8% in 2016, which is up 0.1 percentage points over last month’s projection. For 2017, the panel also sees inflation averaging 2.8%.

Author: Ricard Torné, Lead Economist

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Saudi Arabia Inflation Chart

SaudiArabia Inflation January 2016 0

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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