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 (January 2016): New energy prices push inflation to a 5-year high
The General Authority for Statistics (GAS) has released Consumer Price Index data for January, showing a sharp rise in prices by 4.3 percent year-on-year, accelerating from 2.3 percent during the previous month. The recent reform to energy prices meant that housing and utilities and transport were the main sources of inflation as they accelerated sharply in January, both in year-on-year and monthly terms. Our estimate of core inflation, which excludes food and rent and other housing services, but includes transport, rose to its highest level in three years.
Saudi Labor Market Update: Unemployment and participation fall
Labor Market reportAccording to data recently released by the General Authority for Statistics (GAS), the Saudi unemployment rate fell slightly from 11.7 percent in 2014 to 11.5 percent in 2015. This fall was mainly attributed to a decline in Saudi labor force participation rather than higher employment growth, as job creation for Saudis have actually slowed during the year. Looking ahead, we expect the private sector to be the main source of new jobs for Saudis, supported by continued labor market reform.
