Kingdom’s inflation eases to new low

JEDDAH — Saudi annual inflation eased to 4.9 per cent in June, its lowest level since last September, despite a big rise in housing prices, official data showed.

Inflation slowed from 5.1 percent in May. The month-on-month rate in June was unchanged from 0.2 percent in May, according to the Central Department of Statistics.

“I think it is probably lower commodity prices globally and a reflection of a strong dollar and a weaker euro, because about 28pc of Saudi imports are from Europe and that makes a difference,” said James Reeve, senior economist at Samba Financial Group.

Prices of housing, rents and water jumped 8.8 percent from a year earlier in June.

Last year the government promised to build half a million homes and last week passed a mortgage law to stimulate house building.

Other price categories were relatively subdued; food prices, which account for 26 percent of consumer expenses, climbed 4.7 percent in June and clothing gained 2.9 percent. — Agencies