Interest rates in Saudi Arabia are forecast to slow to about 1.1% in 2019, as prices are set to continue a downward trend to adjust with VAT and the structural reforms in the labour market, according to Jadwa Investment.
In its latest research note, Jadwa said prices rose by 2.4% year-on-year in October, and declined by 0.3% month-on-month, citing data from the General Authority for Statistics (GaStat).
Since the start of the year, prices have risen by an average of 2.5% year-to-October, despite the introduction of VAT and utility and fuel price reform at the turn of the year, it said. It added that Food and beverages prices rose by 6.3% year-to-October, with main price rises coming from fish, bread and cereals.
Housing and utility prices were marginally down by 0.7% year-to-October, likely to be due to the impact of rentals for housing which declined by an average of 2.9% year-to-October.
Jadwa said Transportation prices saw the highest growth rate of 10.5%, after Tobacco.
Source Credit: Arabian Business