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Saudi Consumer Prices (Aug.)

Saudi inflation edged up to 6.2% y/y in August as the effects of the VAT hike at the start of July continued to dominate. Inflation will remain elevated until the middle of next year and, combined with the suspension of the Cost of Living Allowance, this will act as a major drag on households’ real incomes and is a key reason why we think that the economic recovery will be weak.

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