Saudi Arabia's consumer prices fell 1.9 percent from a year earlier in January 2019, the largest decline since January 2001 due to base effects correlated with introduction of a 5 percent value added tax and increase in domestic gasoline prices at the beginning of 2018. Housing, water and energy prices posted the largest drop (-7.7 percent vs -5.1 percent in December), followed by clothing & footwear (-1.2 percent vs -3.2 percent), communication (-1 percent vs 1.1 percent), miscellaneous goods & services (-1 percent vs 0.8 percent), transport (-0.8 percent vs 12 percent) and furnishings & household equipment (-0.2 percent vs 5 percent). In addition, inflation slowed for food & beverages (1.4 percent vs 7.1 percent) and restaurants & hotels (1.8 percent vs 7.3 percent). On a monthly basis, consumer prices fell 0.3 percent in January. Inflation Rate in Saudi Arabia averaged 2.63 percent from 2000 until 2019, 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 -1.70 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.