Economic updates
Our in-depth, independent reports cover the macroeconomic environment, the Saudi government’s annual budget, and Saudi Arabia’s monetary and financial developments, labor market, and inflation.
Inflation update (September 2014): Food and rental inflation accelerate
The Central Department of Statistics and Information (CDSI) has released Consumer Price Index data for September, showing a rise in prices by 2.8 percent year-on-year, staying at the same level compared to the previous month. Foodstuffs and housing have continued to be the main sources of inflation as they all accelerated in August and September. We expect external factors contribution to inflation to remain subdued, particularly given a strengthening USD and the bleaker prospects of global economic growth. We revise our estimates for average annual inflation to 2.8 percent for 2014, slightly down from 2.9 percent.
Inflation update (December 2014) : Inflation averaged 2.7 percent in 2014
The Central Department of Statistics and Information (CDSI) has released Consumer Price Index data for December, showing a deceleration in prices to 2.4 percent year-on-year. Overall inflation for 2014 averaged 2.7 percent, down from 3.5 percent in 2013 with most components of the headline index recording a slowdown. We expect inflation to be subdued throughout 2015. External factors contribution to inflation will remain weak, particularly given a strengthening USD and the weaker prospects of global economic growth. We thus estimate an average annual inflation rate of 2.6 percent for 2015.
