Saudi Arabia’s inflation rate eased to 2.7% in June compared to 2.8% in the previous month, driven by stable prices across all sectors, according to the latest report released by the General Authority for Statistics (GASTAT). 

 

Meanwhile, Wholesale Price Index also decreased by 1.29% in June compared to the same month in 2022, signaling an acceleration in the decline of prices. Oil prices showed healthy growth in July 2023 after seeing a dip in June 2023, according to Al Rajhi Capital Research.

 

Consumer Price Index (CPI): CPI increased by 2.70% y-o-y in June (+2.80% y-o-y in May). The y-o-y rise of the CPI resulted mainly from Housing, Water, Electricity, and Gas (+9.10% y-o-y).

 

Wholesale Price Index (WPI): WPI decreased by 1.29% y-o-y in June (-1.06% y-o-y in May), Due to a decline in ‘Agriculture and fishery products’ (-2.05%).

 

Index of Industrial Production (IIP): IIP decreased (-1.20% y-o-y) in May, mainly due to a decline in the Mining and quarrying sectors’ activity (-5.50% y-o-y).

 

International trade: Non-oil exports in the month of May decreased -8.70% y-o-y, compared to the decrease of -27.44% y-o-y in April. The decline in shipments was driven by Chemical Products (-27.20% y-o-y).

 

Saudi Central Bank’s foreign reserves: On an annual basis, fell 5.00% in June as compared to a similar increase in May, to SR1.66 trillion ($440 billion). -- TradeArabia News Service