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.
Feature: High inflation likely for the rest of 2010
Inflation hit a one-year high of 5.5 percent in June as a result of higher food prices and the strengthening of domestic demand. With rental inflation likely to go up, Ramadan and unfavorable weather conditions in Europe set to lift food prices and higher electricity tariffs, we have raised our forecast for average inflation.
Feature: The inflation alleviation plan
On January 28 the cabinet approved a 17-point plan to alleviate the impact of rising prices. The package will have positive results due to either higher wages or lower prices. Its impact on overall inflation and the state of public finances will be relatively limited.
