Saudi inflation hits 2.7 percent in 2014
(MENAFN) According to the Central Department of Statistics and Information (CDSI), Saudi's inflation rate has registered a deceleration to 2.4 percent during December compared with 2.5 percent in November, thus putting the annual inflation at an average of 2.7 percent in 2014, Arab News reported.
In December, inflation for both food products and housing continued to slow for the third consecutive month to reach 2.6 percent, and 2.5 percent respectively, while core inflation accelerated slightly to 2.2 percent compared to 2.1 percent in November.
During 2014, almost all the components of the Consumer Price Index (CPI) recorded a slowdown compared to 2013, with food prices slowing to an average of 3.3 percent, compared to 5.8 percent in 2013, and housing inflation declining slightly to hit 3.4 percent in 2014 compared with 3.5 percent in 2013.
Meanwhile, recreation and culture recorded the highest acceleration at 7.2 percent, up from 1.8 percent in 2013, education, health, and furnishings also recorded slight increases, while transport, the largest component of the core index, recorded an annual decline in prices of 0.5 percent, compared to positive inflation of 2.5 percent in 2013.
"For 2015 we expect inflation to be mainly subdued, but still driven by rent and housing related services as well as food prices. Whilst the latter is expected to be less of a concern as international food prices continue to decline, housing inflation is to be the main source for upward pressure given the continued shortage in housing supply. As such, we expect average annual inflation in 2015 to reach 2.6 percent," Jadwa Investment said in its new report.
In December, inflation for both food products and housing continued to slow for the third consecutive month to reach 2.6 percent, and 2.5 percent respectively, while core inflation accelerated slightly to 2.2 percent compared to 2.1 percent in November.
During 2014, almost all the components of the Consumer Price Index (CPI) recorded a slowdown compared to 2013, with food prices slowing to an average of 3.3 percent, compared to 5.8 percent in 2013, and housing inflation declining slightly to hit 3.4 percent in 2014 compared with 3.5 percent in 2013.
Meanwhile, recreation and culture recorded the highest acceleration at 7.2 percent, up from 1.8 percent in 2013, education, health, and furnishings also recorded slight increases, while transport, the largest component of the core index, recorded an annual decline in prices of 0.5 percent, compared to positive inflation of 2.5 percent in 2013.
"For 2015 we expect inflation to be mainly subdued, but still driven by rent and housing related services as well as food prices. Whilst the latter is expected to be less of a concern as international food prices continue to decline, housing inflation is to be the main source for upward pressure given the continued shortage in housing supply. As such, we expect average annual inflation in 2015 to reach 2.6 percent," Jadwa Investment said in its new report.
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