Annual inflation rate in Saudi Arabia fell to 2.2% in December of 2018 from 2.8% in the previous month. It was the lowest inflation rate since September, as cost slowed for food & beverage (7.1% from 7.7% in November), particularly meat & poultry (5.6% from 5.9%); fish & seafood (18.1% from 19.4%) and vegetables (10.6% from 13.7%). In addition, prices rose at a slower pace for communication (1.1% from 1.3%) and restaurant & hotels (7.3% from 8.6%). On the other hand, prices advanced faster for furniture & household equipment (5% from 4.6%); miscellaneous goods & services (0.8% from 0.6%) and recreation & culture (4.6% from 3.8%). Meantime, inflation was steady for transport (12%, the same as in November); education (0.2%); health (4%) and tobacco (10.2%) while cost continued to decline for housing & utilities (-5.1% from -3.1%) and clothing & footwear (-3.2% from -4.5%). On a monthly basis, consumer prices went down 0.3%, following a 0.2% drop in November. Inflation Rate in Saudi Arabia averaged 2.63 percent from 2000 until 2018, reaching an all time high of 11.10 percent in July of 2008 and a record low of -2 percent in January of 2001.
Inflation Rate in Saudi Arabia is expected to be 1.60 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Saudi Arabia to stand at 2.00 in 12 months time. In the long-term, the Saudi Arabia Inflation Rate is projected to trend around 3.10 percent in 2020, according to our econometric models.