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.
Inflation update (December 2014) : Inflation averaged 2.7 percent in 2014
The Central Department of Statistics and Information (CDSI) has released Consumer Price Index data for December, showing a deceleration in prices to 2.4 percent year-on-year. Overall inflation for 2014 averaged 2.7 percent, down from 3.5 percent in 2013 with most components of the headline index recording a slowdown. We expect inflation to be subdued throughout 2015. External factors contribution to inflation will remain weak, particularly given a strengthening USD and the weaker prospects of global economic growth. We thus estimate an average annual inflation rate of 2.6 percent for 2015.
Inflation Update- (March 2015): CPI slows for the Seventh consecutive month
The Central Department of Statistics and Information (CDSI) has released Consumer Price Index data for March, showing a deceleration in prices to 2.0 percent year-on-year compared to 2.1 percent in February. Foodstuffs continued to slow as the deflationary trend in international food prices grew further. Housing remained the major contributor to overall inflation despite a slowdown in March. Our estimate of core inflation, which excludes food and rent and other housing services, remained almost unchanged at 2 percent since the start of 2015.
