Saudi inflation to moralize on energy price hikes, VAT: Alkholifey

Saudi Arabia’s inflation rates will return to normal levels, following energy price hikes and implementation of the value-added tax (VAT) starting January 2018, Ahmed Alkholifey, Governor of the Saudi Arabian Monetary Authority (SAMA), the Kingdom’s central bank, said on Tuesday.

Deflation rates have started to ease by almost 0.3 percent.

Inflation rates did not have a negative impact on financiers, savings, or the commodities market, Alkholifey added during a press conference.

In January 2017, Saudi Arabia’s inflation rate turned negative for the first time in over 10 years, as prices fell by 0.4 percent compared to a rise of more than 4 percent in January 2016, Argaam reported.