By Staff writer
Consumer price data shows that inflation dropped to 1.7% last month; food and beverage prices fall 4.3% in December from year-earlier
Saudi Arabia's inflation rate fell to its lowest mark in 10 years in December, according to figures released by the country's Central Department of Statistics.
Consumer price data showed that inflation dropped to 1.7 percent last month, down from 2.3 percent the previous month.
The figures, cited by Reuters, showed that food and beverage prices fell 4.3 percent from a year earlier, partly because of the strong US dollar, to which the Saudi riyal is pegged.
Prices of housing and utilities climbed 6.4 percent and transport costs jumped 7.5 percent, the data also showed.
The figures come just days after the International Monetary Fund (IMF) lowered its growth outlook for Saudi Arabia on back of lower oil production and capital spending.
In its World Economic Outlook report update, the IMF said gross domestic product (GDP) will expand 0.4 percent in 2017. It compares with the fund’s October prediction of 2 percent growth in the October 2016 report.
In December, the Saudi government said growth slowed to 1.4 percent in 2016, below the average of 4 percent in the past decade.
It goes without saying that diversifying the Saudi economy is vital for its sustainability. The kingdom clearly has begun expanding on investments into additional sectors.
There surely are many obstacles- that are merely a challenge that could be overcome one by one. The Saudi economy has been growing by an annual average rate of more than 4 percent- If that is not impressive, I don't know what is!
Being one of the top economies propelling today's world, global economic waves and (yup, tsunamis too) will surely have an effect. And thus comes reform! Hence we see them privatising and investing like never before !