Saudi inflation predicted to average 11-12%

by Andy Sambidge Thursday, 31 July 2008

Saudi Arabia’s inflation is likely to average 11-12 percent this year as the price of rice keeps food prices high.

Related Stories

With government spending brisk, and the prospect of an early US interest rate hike receding, domestic liquidity growth is likely to remain pronounced, according to Samba Financial Group’s monthly monitor for August.
The continued buoyancy of food prices and rents remains the most immediate cause of inflation, Arab News reported on Thursday.

For Saudi Arabia, the key food variable is the price of rice, which has soared this year as a result of climatic events and export bans by key producers, though it has begun to moderate somewhat.

Meanwhile, the cost of construction raw materials — particularly steel — has continued to surge.

Global composite steel prices increased by 62 percent in the year to June, while the local price of steel rebars doubled over the same period.

Spiralling construction costs are forcing higher housing prices and rents, with demand supported by robust population growth in major urban areas.



Search Property (2052 listed)



Enter a Development, City, Real Estate Agent or Developer name
Property Type
Added to Site
Price Range
to
Bedrooms
Area (in sqft)
to
to

Quick Links(Residental)