Saudi inflation hits 10-year high

zoom

(Getty Images)

Annual inflation in Saudi Arabia rose above 5% in October to reach its highest in at least 10 years, propelled by rent and food costs, government data showed on Monday.

Inflation in the world's largest oil exporter accelerated to 5.35% in October from 4.89% in September, the Central Department of Statistics said in a statement.

Rent prices jumped 11.7% in October, from 11% in September, while food and beverage costs rose 7.5% by October 31, compared with 7.2% a month earlier, the data showed.

The central bank is constrained in the fight against inflation by the riyal currency's peg to the dollar. This forces it to track US monetary policy at a time when the Federal Reserve is cutting interest rates and the US currency is weak.

At a summit of Gulf Arab rulers last week, Saudi Arabian finance minister Ibrahim Al-Assaf ruled out scrapping the riyal's peg to the dollar. But Gulf policymakers will meet within days to discuss currency revaluations, Bahrain's foreign minister said on Saturday.

Saudi Arabia's King Abdullah has ordered subsidies on imported rice and baby milk to cushion consumers from rising inflation, according to a decree published on Sunday.

Saudi money supply growth, an indicator of future inflation, rose to 21.11% in October, the central bank said last week. (Reuters)

Print | Email | Discuss this article |

READERS' COMMENTS

View all comments (0)

Have your say

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Security Code *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM