Saudi Arabia’s annual inflation rate fell back marginally in February to 2.9%, from 3.0% in January, official data showed on Wednesday. Inflation was up only 0.1% M-o-M, with food prices up 0.3% and non-food inflation unchanged, indicating limited second-round effects from the fiscal measures implemented last month, when inflation jumped 3.9% M-o-M. We note that using the old consumer basket – with a different base and weights – inflation would have stood at 4.4% Y-o-Y in February, down from 4.6% in January.
Mohamed Abu Basha