Middle East & North Africa Economics

Middle East Data Response

19 February, 2019

Saudi Consumer Prices (Jan.)

Saudi Arabia re-entered deflation at the start of 2019 as we had anticipated, with consumer prices falling by 1.9% y/y in January. A fresh round of subsidy cuts poses an upside risk to the inflation outlook but, with domestic demand likely to remain subdued, we expect underlying price pressures to stay weak.

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