Saudi inflation at 19-month low
16:14, 19 May 2009
RIYADH. May 19. KAZINFORM Saudi Arabia?s annual inflation rate fell for a sixth-month running to a 19-month low of 5.21 percent in April, with official data showing food price rises continued to decline while pressures from rents remained steep; Kazinform refers to the Arab News.
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.
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