Introduction

In its preliminary budget statement for next year, Saudi Arabia’s finance ministry released preliminary estimates of inflation rates for the current year and the next three years.

Estimated Inflation Rates

Inflation is projected to reach 2.6 percent in 2023, 2.2 percent in 2024, 2.1 percent in 2025, and 1.9 percent in 2026.

Saudi Arabia’s Measures to Control Inflation

The Saudi Arabian government has taken proactive measures to reduce the rise in global inflation. For instance, they have set a price ceiling on certain petroleum products, which has helped contain inflation and mitigate the impact of rising prices.

Current Inflation Rate

Saudi Arabia’s inflation rate decreased to 1.95 percent year-on-year in August of the previous year, compared to 2.3 percent in July. On a monthly basis, it reached 0.03 percent.

Factors Driving Inflation

The rise in inflation can be attributed to increasing home rents, which have been rising for the past 18 months following 61 months of decline.

Preliminary Budget Statement for Fiscal Year 2024

Yesterday, the Saudi Arabian Ministry of Finance announced the preliminary budget statement for fiscal year 2024. Analysts expect a deficit of 1.9% and a growth rate of 4.4%.

Source

Source: Al-Ektisadiya.