Saudi Arabia: Inflation unchanged in June
Latest reading: Consumer prices increased 1.8% on a year-on-year basis in June, unchanged from the previous month’s reading.
Relative to the prior month’s data, there were higher price pressures for food and non-alcoholic beverages (+1.4% on a year-on-year basis vs +0.7% in May) and transport (+1.7% vs +1.5% in May). In contrast, there were reduced price pressures for clothing and footwear (-0.4% vs -0.1% in May), housing and utilities (+3.5% vs +3.7% in May) and recreation and entertainment (+2.5% vs +2.6% in May).
Finally, consumer prices increased 0.16% in June on a month-on-month basis, following a 0.20% increase in the previous month.
Panelist insight: Emerging Market Watch analysts commented:
“The war in Iran has pushed crude oil prices to triple digits but fuel subsidies and ample supply of crude to the domestic refineries have shielded Saudi consumers from higher oil prices and fuel shortages […]. Overall, we believe that the currency peg will help contain inflationary pressures, but the closure of the Strait hampers imports and raises inflationary pressures in the kingdom.”