Saudi inflation jumped to 6.1% y/y in July on the back of the tripling of the VAT rate from 5% to 15% and we expect it to hover around this level over the next twelve months. This, combined with the suspension of the Cost of Living Allowance, will act as a major drag on households’ real incomes and is a key reason why we think that the economic recovery from the coronavirus crisis will be weak.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.