Saudi inflation eases further in July to 2.3%

Saudi inflation eases further in July to 2.3%

“Looking ahead, we think that the headline inflation rate will continue to ease over the remainder of this year to 1-1.5 per cent y-o-y and will hover around this rate well into 2024,” James Swanston, Middle East and North Africa economist at Capital Economics, wrote in a research note.

The July headline rate - the slowest since June last year - was below Capital Economics’ forecast of 3.1 per cent and a median expectation of 2.4 per cent in a Reuters poll.

Prices of housing, water, electricity, gas and other fuels were up 0.3 per cent from June, when it notched a 9.1 per cent annual rise. Food and beverage prices were 0.4 per cent higher compared to June.

Prices for clothing and footwear dropped 3.9 per cent in July from a year earlier, easing 0.8 per cent from June. Furnishings, household equipment and maintenance fell 2.5 per cent y-o-y and 0.3 per cent from June.