Palm trees and buildings in Saudi Arabia

Saudi Arabia Inflation January 2018

Saudi Arabia: Inflation soars in January on VAT and fuel price hike

Consumer prices jumped 3.9% from the previous month in January, contrasting December’s 0.1% drop and marking the strongest rise on record. The reading was driven mainly by much higher prices for transport, tobacco and food and beverages. That said, January’s figures reflect the introduction of a 5% value-added tax (VAT) and hiked domestic gasoline prices on 1 January. Conversely, prices for clothing and footwear declined on a monthly basis in January due to sharp discounting by retailers.

Inflation rose to 3.0% in January from 0.4% in December, which was a 16-month high. As a result of January’s strong rise in prices, the annual average variation in consumer prices rose from minus 0.2% in December to minus 0.1%.

Saudi Arabia Inflation Forecast

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest