Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

KSA inflation: Upside risks may emerge in H2  Join our daily free Newsletter

MENAFN - Arab News - 17/04/2014
No. of Ratings : 0
Add to Mixx!


(MENAFN - Arab News) Saudi cpi inflation fell for the fourth consecutive month in march reaching 2.6 percent year-on-year (y-o-y) in march compared with 2.8 percent in february according to a report released on wednesday.

it said core inflation slightly increased on the back of higher prices of 'other expenses and services".

jadwa investment's inflation update for march 2014 said lower food price inflation was the main reason for the cpi decline while rental inflation picked up slightly to become the largest single contributor to headline inflation in march.

the report said negligible external price pressures due to lower commodity prices a strong dollar and subdued inflation among trading partners should offset any local inflationary pressures.

citing the central department of statistics and information (cdsi) jadwa investment said saudi arabia's inflation rate fell for the fourth consecutive month in march reaching 2.6 percent year-on-year compared with 2.8 percent in the previous month.

it said lower food price inflation was the main reason for the decline while rental inflation picked up slightly.

on a monthly basis inflation increased slightly to 0.2 percent in march up from a two-year low of 0.1 percent in february.

jadwa researchers' estimate of the core index which excludes food rental and housing-related services rose by 1.5 percent year-on-year (0.1 percent month-on-month) up from 1.4 percent in february.

this was almost entirely due to a pick up in the prices of 'other expenses and services" the largest component of the core index.

the latter was in turn driven mainly by gold prices which got off to a good start this year after a 28 percent drop in 2013.

however the recent fall in gold prices at the end of march means a stable outlook for the inflation of 'other expenses and services" component of the core index.

the jadwa report said food price inflation was at its lowest level in march since august 2012 at 3.8 percent y-o-y. in monthly terms food prices actually contracted by 0.3 percent.

as highlighted in jadwa's previous inflation update this was expected as both global food inflation and domestic wholesale food inflation remained subdued.

according to the un food and agriculture organization year-on-yar global food price inflation remained in a deflationary mood for the ninth consecutive month in march.



with food accounting for the largest proportion of the cost of living index (21.7 percent) this slowdown was sufficient to lower headline inflation despite the increase in rental inflation.

partially offsetting the impact of lower food price inflation was a rebound in housing and related items inflation which climbed back over 4 percent similar to levels in august last year.

as a result the report said housing and related items inflation surpassed food inflation as the largest contributor to headline inflation in march the first time since april 2012 .

it added: 'we maintain our view that the uncertainty associated with the unclear domestic housing policy and its implications on property valuations will increase the unpredictability of rental and housing inflation. outside of housing and other expenses and services inflation there remains very little domestic price pressure in the economy. the small and mainly downward movement in other components of the inflation basket suggests that inflation will maintain the current level over the next few months but upside risks likely to emerge in the second half of this year."

jadwa investment added: 'at present we expect average inflation to fall to 3 percent this year compared with 3.5 percent in 2013."

it said external inflationary pressure would remain muted due to declining inflation among trading partners lower commodity prices and a strengthening of the dollar. the domestic environment will therefore dictate the cpi trend for the rest of the year.

the report said: 'we expect inflation to remain at its current level for the next few months but it will start to increase toward the second half of the year on the back of seasonal domestic consumption demand elevated government spending and lower base effects. the ample liquidity in the banking system could feed into an acceleration of private sector credit growth. this would in turn create an upward pressure on prices. however with growth in money supply currency outside banks and credit extended to the private sector in line with activity in the non-oil sector we do not expect any change in monetary policy over the coming 18 months especially given the current inflation trend."


 


Arab News




  MENA News Headlines
 Feb 20 2017 - Zain launches latest offer: 'New Offer Every Week' - Campaign to share joys of national festivitiesArab Times
(MENAFN - Arab Times) Photo of Zain's Hala Feb promotion entitled 'New Offer Every Week' KUWAIT CITY, Feb 14: Zain, the leading telecommunications company in Kuwait, announced the latest offers ...

 Feb 20 2017 - Kuwait index extends rally in volatile trade - NBK gains 10 fils Jazeera Airways dipsArab Times
(MENAFN - Arab Times) KUWAIT CITY, Feb 15: Kuwait stocks headed north on Wednesday extending the winning spree to fourth consecutive day. The price index climbed 63.44 pts in volatile trade to ...

 Feb 20 2017 - Zain and iflix establish joint venture, iflix Arabia - JV to bring world-class Internet TV service to regionArab Times
(MENAFN - Arab Times) (Left to right): Scott Gegenheimer, Bader Al Kharafi, Patrick Grove and Mark Britt during the press conference. KUWAIT CITY, Feb 15: Zain, a leading mobile and data services ...

 Feb 20 2017 - Ooredoo continues special February offer - National holidays celebration surprise to be announced soonArab Times
(MENAFN - Arab Times) The facade of Ooredoo head office in Kuwait City. KUWAIT CITY, Feb 15: Ooredoo, Kuwait's fastest network, is continuing its February offer, which gives prepaid customers ...

 Feb 20 2017 - KPMG holds retail and automotive VAT seminar - Compliance of VAT and its impact on businesses discussedArab Times
(MENAFN - Arab Times) VAT seminar attendees KUWAIT CITY, Feb 18: KPMG, one of the world's leading international firms offering professional services in audit, tax and advisory held a Value Added ...

 Feb 20 2017 - Warba Bank inks deal with Al-Mulla Co - Bank to boost allocation for financing portfoliosArab Times
(MENAFN - Arab Times) CEO of Warba Bank Shaheen Hamad Al-Ghanem and Deputy Chairman and CEO of Al-Mulla International Financing Company Aziz Al-Muraikhi during the press conference. KUWAIT CITY, ...

 Feb 20 2017 - Victory Arch Group holds first-of-its-kind confab - 'Technological Development to Achieve Excellence'Arab Times
(MENAFN - Arab Times) Photo from the event KUWAIT CITY, Feb 19: Victory Arch Group Kuwait held its first IT conference titled 'Technological Development to Achieve Excellence' specifically for ...

 Feb 20 2017 - Kuwait expected to spend $115bn on energy projects over next 5 yrs - Middle East to spend $294bn on oil and gas projectsArab Times
(MENAFN - Arab Times) Photo shows a petrochemical facility in the Middle East. Lower oil prices is reshaping MENA oil and gas landscape. DUBAI, Feb 19: Oil producers across the Middle East and ...

 Feb 20 2017 - Zain net profit up 2%, revenues at $3.6bn - Board proposes cash dividend of 35 fils/shareArab Times
(MENAFN - Arab Times) Zain KUWAIT CITY, Feb 19: Zain Group, a leading mobile telecom innovator in eight markets across the Middle East and Africa, announces its consolidated financial results for ...

 Feb 20 2017 - Vulgar video clip produced by Tunisian woman and two Kuwaiti menArab Times
(MENAFN - Arab Times) KUWAIT CITY, Feb 16: Personnel from the Criminal Investigations Department have arrested a Tunisian woman and two young Kuwaiti men for producing a vulgar video clip and of ...

more...


 





Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Search News
Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help