Saudi Arabia’s costumer price index (CPI) rose 3% in August from a 12 months earlier, reputable information showed on Thursday, accelerating from a 2.7% extend in July.
Food and drinks and transport charges have been again the essential drivers of inflation, each rising 4% in August, the General Authority for Statistics said in a statement. Meat expenses have been up 6.7%, pushing up the rate for meals and beverages, which make up 18.8% of the consumer basket.
Prices have been up 0.4% on a month-to-month basis, in contrast with a 0.5% month-on-month upward push in July.
“The month-to-month CPI used to be as soon as affected by means of the extend of foods and beverage prices through 0.8%, frequently due to the make bigger in food costs through 0.9%,” the data organization said.
Capital Economics expects inflation to have peaked in August and gradual to 2% via way of the give up of this year and 1.5% with the aid of the usage of mid-2023, referred to James Swanston, Middle East and North Africa economist.
“If anything, the risks are skewed to the draw back given the creating possibility of a reduce to the VAT rate.”
In July 2020, Saudi Arabia tripled its value-added tax (VAT) to 15% to shore up cash hit through low oil expenses due to a rate fight with Russia and the have an impact on of the COVID-19 pandemic.
Last year, Saudi Arabia’s de facto ruler, Crown Prince Mohammed bin Salman, cited the desire to raise VAT was once “a painful measure” that would closing between one and five years before a decrease to between 5% and 10%.