Saudi Arabia inflation rate up in April – Reuters

Vehicles drive past the King Abdullah Financial District in Riyadh, Saudi Arabia, November 12, 2017. REUTERS/Faisal Al NasserSaudi Arabias inflation rate accelerated to 5.3% in April from 4.9% the previous month, still showing a boost in value-added tax last year, main data showed.The 5.3% yearly boost was mainly due to higher food and transport costs, the General Authority for Statistics stated.”Prices of food and beverages taped the greatest yearly boost of 8.4%, generally due to the increase in food prices,” it said.On a month-on-month basis, consumer rates increased 0.2%. Annual inflation was 3.4% in 2020, choosing up in the 2nd half of the year after authorities tripled a value-added tax to 15% to reinforce coffers harmed by the coronavirus crisis and lower oil prices.Saudi Arabias economy diminished 3.3% in the first quarter this year from a year earlier, hit by oil output cuts, but the non-oil economy expanded 3.3%, recuperating from the pandemic, according to flash government estimates this month. find out more The kingdoms economy, the largest in the Arab world, is expected to grow 2.1% in 2021 after diminishing 4.1% in 2015, the International Monetary Fund stated this month.The Fund stated that, while plans to change Saudi finances were making great development, authorities might think about increasing costs to help and support low-income homes balance out the loss of purchasing power after combination measures presented in 2015. check out more “Looking ahead, we think that the heading inflation rate will continue to wander higher over the rest of this quarter, peaking at around 6.5% y/y in June, mainly due to stronger energy cost inflation,” James Swanston, a financial expert at Capital Economics, said in a note on Thursday.”But inflation will drop sharply from July as the effects of the VAT trek drop out of the yearly cost comparison and remain at around 1-2% y/y over the course of this year and next.”Our Standards: The Thomson Reuters Trust Principles.