Saudi Consumer Inflation Holds Steady in June; Wholesale Prices Rise

Annual consumer inflation in Saudi Arabia unexpectedly remained at 1.8% in June, while the kingdom's wholesale costs continued to climb, according to economic data published Wednesday. The annual inflation figure came in lower than the forecast of 1.9%. According to the country's General Authority for Statistics, higher prices were driven by a 3.5% increase in housing, fuel and utility expenses, followed by gains of 1.4% in food and beverages and 1.7% in transportation. Month-on-month, consumer prices in the country grew by 0.2%, unchanged from May and aligned with market expectations. Meanwhile, annual wholesale price inflation in Saudi Arabia accelerated to 4.8% in June, after a 4.6% growth a month ago. The increase was primarily fueled by a 1.6% gain in metal products, machinery and equipment and a 9.3% jump in other transportable goods. The kingdom's monthly wholesale price growth cooled to 0.2%, down from the 1.2% rise in May. The uptick was attributed to a 1.4% increase in agriculture and fishery items. In a separate same-day release, the General Authority for Statistics also reported that Saudi Arabia's producer price index climbed 7.5% year over year in May,.