Saudi consumer prices see deflation. Here’s what that means

Consumer Prices Saudi

Consumer prices in Saudi Arabia decreased in January, marking the first time that the country has seen price deflation since the early 2000s, according to newly released data.

Numbers from the Saudi Central Department for Statistics said that prices had decreased by 0.4% compared to January 2015, and by 0.2% compared to December 2015. The price deflation was attributed to the slow economy, which has been dented by low oil prices. The economic slowdown forced many sellers to slash prices in order to make sales.

According to the data, food and beverage prices fell by 4.2% over the course of the year.

However, according to analysts, this round of lower consumer prices won’t last long, as government plans to raise the price of domestic fuel and energy are slated to come into effect this year.

Analysts have also pointed out that the government is investing in stimuli for private sector growth, which should push prices back up.

So if you’re in Saudi Arabia and you want to take advantage of low consumer prices, you’re better off doing it sooner rather than later.

Concerned about the rising cost of living? It may be time to start saving more! Click here to compare savings accounts from the Kingdom’s leading banks.

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