Saudi Arabia’s consumer price inflation is projected to average 1.5 percent in 2019, which is down 0.5 percentage points from last month’s estimate, FocusEconomics said in its latest Consensus Forecast - Middle East & North Africa.
Also read: Fiscal stimulus to accelerate Saudi’s growth in 2019: FocusEconomics
Consumer prices declined sharply from a 2.2 percent year-on-year increase in December to a 1.9 percent drop in January, FocusEconomics report noted, adding that the decline reflected the complete absorption of the VAT implemented in January 2018 and marked the steepest drop since early 2001.
“Inflation is expected to return in the coming months, albeit at low levels,” the report added.
Next year, FocusEconomics expect inflation at 2 percent.
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