Inflation Rates in Saudi Arabia Estimated for the Next Few Years
In a recent budget statement, the Saudi Arabian finance ministry provided preliminary estimates of inflation rates for the current year and the following three years.
The projected inflation rates are as follows: 2.6 percent in 2023, 2.2 percent in 2024, 2.1 percent in 2025, and 1.9 percent in 2026.
Saudi Arabian Government’s Proactive Measures to Control Inflation
To combat the rise in global inflation, the Saudi Arabian government has implemented various proactive measures. One such measure includes setting a price ceiling on specific petroleum products, which has effectively contained inflation and minimized the impact of increasing prices.
Favorable Inflation Trends in Saudi Arabia
In August of last year, Saudi Arabia experienced a year-on-year inflation rate of 1.95 percent, down from 2.3 percent in July. On a monthly basis, the inflation rate was recorded at a minimal 0.03 percent.
This upward trend in inflation was mainly driven by the continuous increase in home rents, which had been declining for over five years before rising for the past 18 months.
Preliminary Budget Statement for Fiscal Year 2024
The Saudi Arabian Ministry of Finance recently unveiled the preliminary budget statement for fiscal year 2024. It is expected that the deficit will reach 1.9 percent, while economic growth is projected at 4.4 percent.
Source: Al-Ektisadiya
