Saudi Arabia's consumer prices dropped 1.3 percent year-on-year in July 2019, following a 1.4 percent decline in the previous month. It was the seventh consecutive month of deflation, although cost fell at a softer pace for housing & utilities (-6.7 percent from -7.2 percent in June); clothing & footwear (-0.3 percent vs -0.5 percent) and communication (-0.6 percent vs -0.7 percent). In addition, prices advanced faster for transport (1.6 percent vs 0.9 percent); miscellaneous goods & services (1.4 percent vs 1.0 percent) and health (1.0 percent vs 0.5 percent) while furniture & household equipment cost rebounded (0.8 percent vs -0.2 percent). On the other hand, prices rose less for food & beverages (0.1 percent vs 1.3 percent) and restaurants & hotels (1.5 percent vs 1.9 percent) while inflation was steady for education (at 1.3 percent) and tobacco (at 0.1 percent). On a monthly basis, consumer prices increased 0.1 percent, following a 0.2 percent rise in June. Inflation Rate in Saudi Arabia averaged 2.50 percent from 2000 until 2019, reaching an all time high of 11.10 percent in July of 2008 and a record low of -2.20 percent in February of 2019.
Inflation Rate in Saudi Arabia is expected to be -1.50 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 2.70 in 12 months time. In the long-term, the Saudi Arabia Inflation Rate is projected to trend around 3.00 percent in 2020, according to our econometric models.