Saudi Arabia: Consumer prices decline further in February
Consumer prices fell 0.2% over the previous month in February, following January’s 0.3% decline. The drop was mainly due to lower prices for fresh vegetables as well as for housing, water, electricity, gas and other fuels.
In February, consumer prices fell 2.2% in annual terms, the sharpest decline since April 1999. February’s print followed the 1.2% decrease in January. Meanwhile, the annual average variation in consumer prices declined from January’s 2.0% to 1.6% in February.
Along with the complete absorption of the VAT in January 2018, subdued inflationary pressures at the start of the year reflect weak domestic demand and declining rental prices.