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Sun 19 Dec 2010 01:06 PM

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Saudi Nov inflation unchanged at 5.8% year-on-year

Monthly inflation in the Kingdom stood at 0.3 percent in November

Saudi Nov inflation unchanged at 5.8% year-on-year
SAUDI INFLATION: Inflation in Saudi Arabia had been on the decline since reaching an 18-month high of 6.1 percent in August (Getty Images)

Saudi Arabia's

annual inflation remained unchanged from the previous month at

5.8 percent in November, state news agency SPA said late on

Saturday, underpinned by rising housing and transport costs.

Monthly inflation in the biggest Arab economy and the

world's top oil exporter stood at 0.3 percent in November,

down from 0.5 percent in the previous month.

"Goods, services and housing are the contributing factors

to inflationary pressures for the month of November ... but

going forward there should be a bit of a decline," said John

Sfakianakis, chief economist at Banque Saudi Fransi.

Housing costs rose 0.5 percent month-on-month, compared to

a 0.6 percent increase in October.

Food prices, which have the largest weighting of 26

percent in the consumer price basket, rose 0.3 percent

month-on-month in November, down from a 1.6 percent rise in

the previous month.

Analysts polled by Reuters expect average inflation of 5.3

percent this year and 5.1 percent in 2011 , still

well below a record high of 11.1 percent in July 2008.

Inflation in Saudi Arabia had been on the decline since

reaching an 18-month high of 6.1 percent in August. The

central bank says it is not yet a concern.

Saudi Arabia's economy is seen expanding by 3.8 percent

this year, following a 0.6 percent expansion in 2009, helped

by recovery in crude prices and generous government spending.

 

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