DUBAI: Saudi Arabia’s inflation rate fell slightly to 5.2 percent in February from 5.7 percent in the prior month, but continued to reflect for the eighth consecutive month a tripling of the value-added tax in July, government data showed on Monday.
The rise in prices was again mainly driven by increases in food and beverages, which recorded their highest annual increase at 11.2 percent, the General Authority for Statistics said. Food prices have a weight of 17 percent in the Saudi consumer basket.
Transport prices increased by 9.8 percent, mainly due to a 9.9 percent rise in prices of purchase vehicles.
Annual inflation was 3.4 percent in 2020, but picked up in the second half of the year after the July VAT hike to 15 percent. The rise followed mild inflation in the first half and a deflationary trend in 2019, when the annual rate was -2.1 percent.
The economy of the world’s largest oil exporter contracted last year, but data suggest the rate of decline slowed in the third quarter as some COVID-19 restrictions were lifted, and GDP is expected to return to growth this year.
Some economists scaled back their headline growth forecasts for Saudi Arabia, the largest Arab economy, after OPEC and its allies agreed to extend most oil cuts into April, leading to a more gradual increase in Saudi oil production than previously expected.
Saudi inflation rate falls to 5.2% in February, reflects VAT hike for eighth month
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Saudi inflation rate falls to 5.2% in February, reflects VAT hike for eighth month
- Price rises driven by food and beverages
- Inflation reflects VAT hike in Kingdom
Saudi POS spending jumps 28% in final week of Jan: SAMA
RIYADH: Saudi Arabia’s point-of-sale spending climbed sharply in the final week of January, rising nearly 28 percent from the previous week as consumer outlays increased across almost all sectors.
POS transactions reached SR16 billion ($4.27 billion) in the week ending Jan. 31, up 27.8 percent week on week, according to the Saudi Central Bank. Transaction volumes rose 16.5 percent to 248.8 million, reflecting stronger retail and service activity.
Spending on jewelry saw the biggest uptick at 55.5 percent to SR613.69 million, followed by laundry services which saw a 44.4 percent increase to SR62.83 million.
Expenditure on personal care rose 29.1 percent, while outlays on books and stationery increased 5.1 percent. Hotel spending climbed 7.4 percent to SR377.1 million.
Further gains were recorded across other categories. Spending in pharmacies and medical supplies rose 33.4 percent to SR259.19 million, while medical services increased 13.7 percent to SR515.44 million.
Food and beverage spending surged 38.6 percent to SR2.6 billion, accounting for the largest share of total POS value. Restaurants and cafes followed with a 20.4 percent increase to SR1.81 billion. Apparel and clothing spending rose 35.4 percent to SR1.33 billion, representing the third-largest share during the week.
The Kingdom’s key urban centers mirrored the national surge. Riyadh, which accounted for the largest share of total POS spending, saw a 22 percent rise to SR5.44 billion from SR4.46 billion the previous week. The number of transactions in the capital reached 78.6 million, up 13.8 percent week on week.
In Jeddah, transaction values increased 23.7 percent to SR2.16 billion, while Dammam reported a 22.2 percent rise to SR783.06 million.
POS data, tracked weekly by SAMA, provides an indicator of consumer spending trends and the ongoing growth of digital payments in Saudi Arabia.
The data also highlights the expanding reach of POS infrastructure, extending beyond major retail hubs to smaller cities and service sectors, supporting broader digital inclusion initiatives.
The growth of digital payment technologies aligns with Saudi Arabia’s Vision 2030 objectives, promoting electronic transactions and contributing to the Kingdom’s broader digital economy.
