Saudi Arabia: The Saudi Central Bank (SAMA) expects inflation to drop in the third quarter of the year, reported Argaam.

The report said the inflation rate is likely to decline as the impact of tripling of the value-added tax began to diminish since the beginning of the second half of 2020.

The Kingdom’s inflation rate was forecast to remain steady at low range during the third quarter, backed by King Salman’s directive to set a cap on local gasoline prices for July.

Fuel prices were capped at SR2.18 ($0.58) per liter for octane 91, and at SR2.33 per liter for octane 95.

It was the first time the Kingdom capped prices since it first liberalized them in 2018 and linked them to international price movement.