Saudi Arabia September consumer prices fall year-on-year

Consumer prices in Saudi Arabia dropped in September from a year earlier. (File photo: Reuters)

Consumer prices in Saudi Arabia dropped in September from a year earlier, but prices fell at their slowest pace so far this year, according to government data.

The consumer price index (CPI) fell 0.7 percent last month on an annual basis, compared to the 1.1 percent annual drop in August.

The fall in CPI shows the dwindling impact from last year’s launch of a value-added tax (VAT).

On a month-on-month basis, consumer prices rose by 0.2 percent in September, according to the data.

“Overall, we think that headline inflation will gradually edge up over the rest of this year before returning to positive territory at the start of 2020, particularly if the government presses ahead with fresh tax hikes or subsidy cuts,” Capital Economics said in a research note.

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Last Update: Wednesday, 20 May 2020 KSA 09:53 - GMT 06:53
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