Saudi Arabia has managed to control inflation in recent months, recording 1.5 percent in June, on an annual basis. This shows that the Kingdom is one of the most stable countries in the G20, with an inflation rate that remains inferior to the global target of 2 percent.
Data issued by the General Authority for Statistics (GASTAT) on Tuesday revealed that residential rents had the biggest influence on inflation in June, compared to the same month last year, as they rose by 10.1 percent.
On a monthly basis, the inflation rate decreased in June, reaching 1.5 percent, compared to 1.6 percent the previous month.
Experts told Asharq Al-Awsat that the rate shows the efficiency of Saudi Arabia’s economic management and liquidity to ensure a balance between growth and inflation. They said the government is making great efforts to adopt the adequate procedures and measures in order to confront the wave of inflation and rising prices that has recently swept the world.
Economic policy analyst Ahmed Al-Shehri told Asharq Al-Awsat that the inflation rate in Saudi Arabia is still under control, and below the global target, noting that it has decreased to 1.5 percent last June, after witnessing slight increases over the past months.
According to Al-Shehri, the annual inflation rate reaching 1.5 percent is mainly due to the increase in housing rental prices by 10.1 percent.
He said the cash supply in Saudi Arabia reached SAR2.9 trillion ($778.1 billion), in parallel with the slowdown in annual inflation to record 1.5 percent in June, which reflects the efficiency of economic management and liquidity to ensure a balance between growth and inflation.
For his part, legal advisor and professor of commercial law, Dr. Osama Al-Obaidy, told Asharq Al-Awsat that the government has resorted to early precautionary measures that helped avoid the inflation crisis.
The stability of the inflation rate highlights the success of the Kingdom’s financial policies and its support for the private sector, in order to raise manufacturing productivity and increase strategic reserves of basic materials and ensure their availability, he said.
