Inflation in Saudi Arabia rose 1.2 percent year on year last December.
According to Pak Sahafat News Agency International Group, Inflation in Saudi Arabia rose 1.2 percent year on year last month and 0.1 percent year-on-month last year.
According to official data, the inflation rate in December is the highest annual inflation rate in the last 6 months, ie since June 2021, which reached 6.2 percent.
Inflation was the 24th consecutive increase last month.
The annual consumer price (inflation) rate in Saudi Arabia rose 1.1 percent last November, the highest level since June, at 6.2 percent.
The rise in inflation last month was due to rising food and beverage prices as the second most influential sector. The annual rise in food and beverage prices coincides with the outbreak of the Corona virus, which has forced countries to close their borders.
Due to the lack of water resources for agriculture, Saudi Arabia imports most of its food from foreign countries.
Inflation in the food sector remains high, probably due in part to quarantines and the public’s willingness to store large quantities of these items and it is predicted that due to the implementation of the VAT increase bill, the inflation rate will remain at the current high level.
Read more: Rising inflation in Saudi Arabia and the negligence of the authorities: https://www.paksahafat.com/en/?p=10190
Saudi Arabia raised its VAT rate to 15 percent in July 2020 following falling oil prices, declining oil demand and declining government revenues, and the Saudi government’s budget deficit has been steadily rising in recent months.
Saudi Arabia is facing a budget deficit for the seventh year in a row, and experts believe that Riyadh will use its reserves to make up for the deficit. Statistics show that Riyadh reserves are running low and are projected to increase from $ 92 billion in 2020 to $ 74.6 billion next year.
The consumer price index shows the changes in the prices that consumers pay for a fixed basket of goods and services consisting of 490 goods. The British magazine The Economist predicted in a report in early December that 2022 would be a difficult year for the global economy.
Capital Economics, the economic research institute Capital Economics, says inflation in Saudi Arabia is projected to remain between 1 and 2 percent in 2022 and 2023.