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Saudi- SAMA expects relatively stable inflation rates in Q4
(MENAFN- Arab News) Saudi Arabia's inflation rates are expected to be relatively stable during the fourth quarter of 2014 in line with the increase in the value of the US dollar and the decline in inflationary pressures on the major groups affecting the general index particularly the group of food and beverages.
Saudi Arabian Monetary Agency's (SAMA) monetary policy and financial stability department has made this prediction in its inflation report for the third quarter of this year.
It pointed out that inflation rates in the third quarter of 2014 were affected by the increases recorded in the group of recreation and culture the group of food and beverages the group of furnishings and household equipment and the group of clothing and footwear.
The group of housing water electricity gas and other fuels registered the highest ratio of effect on the general inflation rate in September 2014 recording an effect ratio of 25.1 in September.
The annual cost of living index registered a rise of 2.8 percent in September 2014 as compared to the corresponding month of the preceding year while the average inflation rate for all months of the third quarter of 2014 was stable at 2.8 percent as a result of the rise in the group of recreation and culture.
According to the SAMA report the IMF projections for primary commodity prices indicate a contraction in the inflationary pressures on the main groups for 2014 except for the group of beverages and the group of raw agricultural material which are expected to rise by 19.6 percent and 2.4 percent respectively. Hence the general price index for primary commodity prices in the global markets is projected to register a deflation of -2.3 percent in 2014 compared to the preceding year.
It said that the annual cost of living index registered an annual increase of 2.8 percent in September 2014 as compared to a monthly rise of 0.2 percent.
During the third quarter of 2014 it registered an annual increase of 2.8 percent against a quarterly rise of 0.8 percent.
The general cost of living index rose by 0.8 percent in the third quarter of 2014 as compared to the preceding quarter and by 2.8 percent compared to the corresponding quarter of the previous year according to the report.
It said that recreation and culture group recorded the highest inflation rate during the third quarter of 2014 as compared to the corresponding quarter of the previous year registering an annual inflation rate of 10.7 percent.
Tobacco group came second with 7.3 percent; next was furnishings household equipment and maintenance group with 4.1 percent; education group with 3.7 percent; miscellaneous goods and services with 3.5 percent and health group with 3.3 percent. Housing water electricity gas and other fuels group registered 3.1 percent; followed by food and beverages with 2.4 percent during the same period according to the report.
However none of the general inflation index groups registered any deflation during the third quarter of 2014.
Inflation rates of the general cost of living index were affected in variable degrees by changes taking place across its various groups said the report.
In terms of its influence on the cost of living index the recreation and culture group ranked first with 27.8 percent during the third quarter of 2014 compared to 5.2 percent in the same quarter of the previous year; followed by the group of food and beverages with an influence rate of 24.5 percent compared to 35.0 percent in the same quarter of the previous year and the furnishings household equipment and maintenance group with an influence rate of 11 percent compared to 14.2 percent in the corresponding quarter of the preceding year.
Then came miscellaneous goods and services with an influence rate of 10.4 percent compared to 0.4 percent in the corresponding quarter of the preceding year.
The total effect rate of the three major groups most affected by inflation (recreation and culture; food and beverages; and furnishings household equipment and maintenance groups) stood at 63.3 percent during the third quarter of 2014 against 54.4 percent in the respective quarter of the previous year.
The wholesale price index registered a quarterly increase of 0.5 percent and an annual increase of 0.2 percent in the third quarter of 2014. It has not recorded any growth rate during the second quarter of 2014 compared to a decline of 0.1 percent in each of the previous two quarters according to the SAMA report.
The group of chemicals and other related material recorded the highest annual increase during the third quarter of 2014 compared to the same quarter of the preceding year. This group denoted an inflation rate of 2.6 percent due to a rise in the subgroup (chemicals) by 8.8 percent during the same period. The group of beverages and tobacco recorded the second highest inflation rate of 2.5 percent. This group was affected by an increase of 4.5 percent in the subgroup (tobacco). The group of miscellaneous manufactured articles came third with an annual inflation rate of 2.2 percent during the third quarter of 2014 due to the increases in the subgroups (furniture apparel and its related material and other miscellaneous manufactured articles) by 3.7 percent 2 percent and 3.4 percent respectively.
In contrast the group of other commodities registered the highest deflation rate during the third quarter of 2014. This group's inflation rate went down by 4.6 percent due to a decline in prices of fine gold (24 carat) by 4.8 percent during the same period followed by the group of oils and fats registering a decrease of 0.9 percent. The group of raw material except for fuels came next with a deflation rate of 0.5 percent said the report.
All cities Cost of Living Index recorded an annual increase of 3.5 percent during the third quarter of 2014. The city of Dammam registered the highest rise of 6.4 percent. Jazan ranked second by 4.9 percent. Abha ranked third by 4.0 percent then Jeddah by 3.6 percent followed by Skaka and Tabuk by 3.4 percent each. However all cities cost of living Index did not register any annual
deflation during the third quarter of 2014 except for Hail with a deflation of 0.1 percent.
Saudi Arabian Monetary Agency's (SAMA) monetary policy and financial stability department has made this prediction in its inflation report for the third quarter of this year.
It pointed out that inflation rates in the third quarter of 2014 were affected by the increases recorded in the group of recreation and culture the group of food and beverages the group of furnishings and household equipment and the group of clothing and footwear.
The group of housing water electricity gas and other fuels registered the highest ratio of effect on the general inflation rate in September 2014 recording an effect ratio of 25.1 in September.
The annual cost of living index registered a rise of 2.8 percent in September 2014 as compared to the corresponding month of the preceding year while the average inflation rate for all months of the third quarter of 2014 was stable at 2.8 percent as a result of the rise in the group of recreation and culture.
According to the SAMA report the IMF projections for primary commodity prices indicate a contraction in the inflationary pressures on the main groups for 2014 except for the group of beverages and the group of raw agricultural material which are expected to rise by 19.6 percent and 2.4 percent respectively. Hence the general price index for primary commodity prices in the global markets is projected to register a deflation of -2.3 percent in 2014 compared to the preceding year.
It said that the annual cost of living index registered an annual increase of 2.8 percent in September 2014 as compared to a monthly rise of 0.2 percent.
During the third quarter of 2014 it registered an annual increase of 2.8 percent against a quarterly rise of 0.8 percent.
The general cost of living index rose by 0.8 percent in the third quarter of 2014 as compared to the preceding quarter and by 2.8 percent compared to the corresponding quarter of the previous year according to the report.
It said that recreation and culture group recorded the highest inflation rate during the third quarter of 2014 as compared to the corresponding quarter of the previous year registering an annual inflation rate of 10.7 percent.
Tobacco group came second with 7.3 percent; next was furnishings household equipment and maintenance group with 4.1 percent; education group with 3.7 percent; miscellaneous goods and services with 3.5 percent and health group with 3.3 percent. Housing water electricity gas and other fuels group registered 3.1 percent; followed by food and beverages with 2.4 percent during the same period according to the report.
However none of the general inflation index groups registered any deflation during the third quarter of 2014.
Inflation rates of the general cost of living index were affected in variable degrees by changes taking place across its various groups said the report.
In terms of its influence on the cost of living index the recreation and culture group ranked first with 27.8 percent during the third quarter of 2014 compared to 5.2 percent in the same quarter of the previous year; followed by the group of food and beverages with an influence rate of 24.5 percent compared to 35.0 percent in the same quarter of the previous year and the furnishings household equipment and maintenance group with an influence rate of 11 percent compared to 14.2 percent in the corresponding quarter of the preceding year.
Then came miscellaneous goods and services with an influence rate of 10.4 percent compared to 0.4 percent in the corresponding quarter of the preceding year.
The total effect rate of the three major groups most affected by inflation (recreation and culture; food and beverages; and furnishings household equipment and maintenance groups) stood at 63.3 percent during the third quarter of 2014 against 54.4 percent in the respective quarter of the previous year.
The wholesale price index registered a quarterly increase of 0.5 percent and an annual increase of 0.2 percent in the third quarter of 2014. It has not recorded any growth rate during the second quarter of 2014 compared to a decline of 0.1 percent in each of the previous two quarters according to the SAMA report.
The group of chemicals and other related material recorded the highest annual increase during the third quarter of 2014 compared to the same quarter of the preceding year. This group denoted an inflation rate of 2.6 percent due to a rise in the subgroup (chemicals) by 8.8 percent during the same period. The group of beverages and tobacco recorded the second highest inflation rate of 2.5 percent. This group was affected by an increase of 4.5 percent in the subgroup (tobacco). The group of miscellaneous manufactured articles came third with an annual inflation rate of 2.2 percent during the third quarter of 2014 due to the increases in the subgroups (furniture apparel and its related material and other miscellaneous manufactured articles) by 3.7 percent 2 percent and 3.4 percent respectively.
In contrast the group of other commodities registered the highest deflation rate during the third quarter of 2014. This group's inflation rate went down by 4.6 percent due to a decline in prices of fine gold (24 carat) by 4.8 percent during the same period followed by the group of oils and fats registering a decrease of 0.9 percent. The group of raw material except for fuels came next with a deflation rate of 0.5 percent said the report.
All cities Cost of Living Index recorded an annual increase of 3.5 percent during the third quarter of 2014. The city of Dammam registered the highest rise of 6.4 percent. Jazan ranked second by 4.9 percent. Abha ranked third by 4.0 percent then Jeddah by 3.6 percent followed by Skaka and Tabuk by 3.4 percent each. However all cities cost of living Index did not register any annual
deflation during the third quarter of 2014 except for Hail with a deflation of 0.1 percent.
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