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.