Saudi inflation among the lowest in G20, says report
RIYADH, August 29, 2023
The Kingdom of Saudi Arabia experienced the lowest inflation rate among the G20 countries with the inflation rate decreasing to 2.3% in July, hitting its lowest point in over a year, said leading Saudi bank Al Rajhi Capital, citing official data.
Al Rajhi attributed this decline to the robustness of the Saudi economy and the notably positive effects of the implemented economic policies.
Concurrently, the Wholesale Price Index experienced a 0.91% drop in July in comparison to the corresponding month in 2022. Additionally, oil prices exhibited robust growth MoM in August 2023, said the Saudi bank citing The General Authority for Statistics (GASTAT).
The consumer price index (CPI) increased by 2.30% y-o-y in July when compared to over 2.70% y-o-y in June. The y-o-y rise of the CPI resulted mainly from Housing, Water, Electricity, and Gas (+8.60% y-o-y), it stated.
On the wholesale price index, the report said it rose by 0.91% y-o-y in July when compared to -1.29% y-o-y in June, due to a decline in ‘Agriculture and fishery products’ (-3.63%).
On the kingdom's industrial production index, the report said it fell 1.60% y-o-y in June, mainly due to a decline in the Mining and quarrying sectors’ activity (-6.50% y-o-y).
According to GASTAT, the non-oil exports in June decreased -45.00% y-o-y, compared to the decrease of -8.70% y-o-y in May. The decline in shipments was driven by Vehicles, aircraft, vessels, and associated transport equipment (-57.30% y-o-y).
