Saudi Arabia: Inflation moderates slightly in June
Inflation came in at 2.7% in June, which was down from May’s 2.8%. The weaker reading was largely due to lower price pressures for recreation and culture, as well as weaker textile prices.
Annual average inflation was unchanged at May’s 2.9% in June.
Lastly, consumer prices increased 0.19% in June over the previous month, mirroring May’s reading. June’s result marked the joint-weakest reading since March.
The Saudi authorities have kept an iron grip on inflation this year thanks to a cap on petrol prices and rising interest rates. Our panelists expect price pressures to continue to ease for the remainder of this year. Supply-chain bottlenecks and rapidly growing demand in the non-oil sector pose upside risks.