Saudi Arabia's consumer prices declined 2.2 percent from a year earlier in February 2019, after a 1.9 percent decrease in the previous month. It was the largest fall in consumer prices since at least January 2000, when series began, as the impact of VAT implementation in 2018 faded. Cost dropped further for housing and utilities (-8.2 percent from -7.7 percent in January) and furnishings & household equipment (-0.7 percent from -0.2 percent). Meanwhile, prices declined at the same pace for transport (-0.8 percent, the same as in January); clothing & footwear (-1.2 percent) and communication (-1 percent). In addition, inflation slowed for food & beverages (0.8 percent from 1.4 percent) and restaurants & hotels (1.5 percent from 1.8 percent). On a monthly basis, consumer prices went down 0.2 percent, following a 0.3 percent decrease in January. Inflation Rate in Saudi Arabia averaged 2.59 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 -1.60 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.