Saudi inflation in August decelerates

MOSCOW/DUBAI: The inflation rate in Saudi Arabia decelerated in August for the second month in a row, as the effects of the July 2020 tripling of the value-added tax (VAT) rate no longer weigh on spending, Arab News reported.

The consumer price index (CPI), a gauge used to detect the changes in prices, recorded a modest increase of 0.3 per cent in August, compared with the same month a year ago.

But the CPI increase represents a sharp drop from the annual rate recorded in June at 6.5 per cent, according to the General Authority for Statistics.

This fall reflects the diminishing impact of the increase in VAT from 5 per cent to 15 per cent that significantly affected the consumer price index levels starting from July 2020.

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