Saudi inflation at 19-month low

Saudi Arabia?s cost of living index stood at 121.2 points on April 30 compared with 115.2 points a year earlier, Saudi Arabia?s Central Department of Statistics said on its website. That compared with inflation of 6 percent in March and was the lowest inflation rate since September 2007. ?Inflation is falling due to lower cost of food products which are now being passed onto the consumer. A somewhat stronger dollar and global deflation is helping Saudi Arabia?s inflation to moderate. There is still a lag effect for foodstuffs which should help inflation come down further. However, rents will keep inflation at around 5 percent on an average on annual basis which are high as per historical levels. Deflation in Saudi Arabia, as well as for many other regional countries, is a far cry and will not be witnessed,? John Sfakianakis, chief economist at SABB (the Saudi British Bank), said; Kazinform cites the Arab News. See www.arabnews.com for full version