RIYADH (Agencies): Saudi Arabia’s annual inflation rate has accelerated to reach 2 percent in March, up from 1.6 percent in February, according to the General Authority for Statistics, also known as GASTAT. The consumer price index, or CPI, in March 2022 has surged 2 percent when compared to the corresponding period a year earlier and rose 0.3 percent when compared to February 2022.
The rise in CPI is mainly attributed to the rise in higher transport prices as well as food and beverages.
Transport prices climbed 4.7 percent as a result of a rise in gasoline prices by 14.7 percent along with a rise in new car prices by around 4 percent.
As for food and beverages, the prices associated with them jumped 3 percent.
The headline annual inflation number came in line with the results of an analyst poll conducted by Bloomberg.
Saudi investment research company Jadwa Investment has revised the Saudi 2022 inflation upwards from 1.7 percent to 2.4 percent.
This was attributed mainly to the war between Russia and Ukraine which has affected a range of commodities including wheat, oil, and natural gas, Jadwa said in a recent research note.
In addition to this, the upward forecast is also linked to the new wave of Covid-19 in several areas such as China which is projected to exacerbate supply chain issues and drive import costs higher.
The holy month of Ramadan has also been taken into consideration while revising the Saudi 2022 inflation considering that higher consumption of food and beverages during the month is most likely to add pressure on the prices associated with food and beverages on a local level.
