Arab News, Saturday, Jul 17, 2021 | Zul Hijjah 7, 1442
Fuel and food prices push June Saudi inflation to highest this year
Saudi inflation accelerated to 6.2 percent in June, the
highest this year, driven by the cost of fuel and food.
It compares to 5.7 percent in May, according to data from the General Authority
for Statistics (GSTAT) published on Thursday.
Transport prices gained 22.6 percent and food and beverages prices rose by 8.1
percent, the national statistics body said.
Consumer prices still reflect an increase of the value added tax (VAT) from 5
percent to 15 percent in July 2020.
“Looking ahead, the headline inflation rate is likely to peak in June at around
6.3 percent year-on-year,” James Swanston, Middle East and North Africa
economist at London-based Capital Economics, said in a research note, last
Saudi Arabia announced a price cap on fuel on Saturday, to support local
consumption and economy growth, as oil prices hit multi-year highs this year.
The Kingdom issued a royal directive to keep fuel prices at SR2.18 ($0.58) for
octane 91 and SR2.33 for octane 95, SPA reported, citing the Energy and Water
Price Reforms Executive Committee.