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 Report- April 2013
The Central Department for Statistic and Information released Consumer Price Index inflation data for April, showing prices slightly rising to 4 percent year-on-year compared with 3.9 percent in the previous three months. This level of inflation remains among the highest inflation rates relative to the Kingdoms main trading partners. Our estimate of Saudi core inflation, which excludes food and housing-related services, also eased to 3.4 percent year-on-year in April compared with 3.5 percent in March. A major highlight of April inflation print is the food prices acceleration to 6.2 percent year-on-year compared with 5.3 percent in March.
Inflation Report- May 2013
According to latest CPI data, Saudi Arabias inflation for May slowed to 3.8 percent year-on-year brought down by a significant fall in the core index to 2.6 percent. Despite slowing core inflation, the food and rent/housing components accelerated in May and remained the main contributors to headline inflation. While domestic inflationary pressure is likely to persist, we see the current inflationary trend as more of a demand-pull inflation rather than a cost-push inflation caused by recent labor market reform initiatives.
Inflation report (June 2013): CPI at 3.5 percent and no signs of cost-push
The Central Department of Statistics and Information released Consumer Price Index inflation data for June, showing inflation at 3.5 percent in June compared with 3.8 percent in May, pushed down by falling core inflation and food prices while rent and housing-related services component remained flat. Our estimate of Saudi core inflation, which excludes food and rental and housing-related services, maintained its downward trend for the fourth consecutive month to record 2.2 percent year-on-year. Food inflation is expected to increase further in July owing to a seasonal trend while strong housing demand will keep the upside risk to rental inflation.