Saudi inflation rises to 5.5 per cent

21 June 2009

Inflation in Saudi Arabia rose to 5.5 per cent in May, the first time inflation has risen in the country for seven months.

Inflation rose from 5.2 per cent in the previous month as a result of rising oil prices and the weakening dollar.

When inflation hit 5.2 per cent in April is was the lowest inflation had been since September 2007. Inflation for the full year is forecast at 4.8 per cent by EFG-Hermes, an Egyptian investment bank.

Food and beverage inflation rose by 2.4 per cent in May, up from 1.6 per cent in the previous month, according to official data from the Central Department of Statistics. Rental prices eased slightly, with rental inflation fro May at 17.7 per cent, down from 18.8 per cent in April, and 20 per cent in March.

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