Saudi Arabia's consumer prices dropped 1.5 percent year-on-year in May 2019, following a 1.9 percent decline in the previous month. It was the fifth consecutive month of deflation, though prices fell the least in the current sequence which began in January. Cost fell less for housing & utilities (-7.5 percent from -7.8 percent in April); communication (-1.0 percent from -1.2 percent). In addition, inflation accelerated for: food & beverages (1.8 percent from 1.0 percent); transport (0.5 percent from 0.3 percent), and restaurants & hotels (1.5 percent from 1.3 percent) while clothing & footwear prices rebounded (0.3 percent from -1.0 percent). Meantime, inflation was flat for furnishings & household equipment (from -0.3 percent).On a monthly basis, consumer prices edged up 0.1 percent, after a flat reading in the prior month. Inflation Rate in Saudi Arabia averaged 2.55 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.