Saturday, Oct 20, 2012
RIYADH (Zawya Dow Jones)--Saudi Arabia's annual inflation eased to 3.6% in September, compared with 3.8% in August, reaching a three-year low mainly due to lower rent prices, data from the Central Department of Statistics and Information showed.
In year-on-year terms, renovations, rents, fuel and water rose 7.2%, compared with August's increase of 7.7%, and food and beverages increased 4%.
Compared with August, on a monthly basis, food and beverages rose by 1% and renovation, rent, fuel and water by 0.2%, other goods and services increased by 1.6%.
The cost-of-living index in the Arab world's largest economy stood at 142.6 points in September, up from 141.7 points in August.
The kingdom's falling inflation, "will help to ease fears that the economy is overheating, which, in turn, could prompt the Saudi Arabian Monetary Agency (SAMA) to ease monetary conditions in the coming months," said Said Hirsh, an economist at Capital Economics.
The kingdom's headline inflation rate fell for the seventh consecutive month in September, hitting a three-year low, he noted.
Write to Iman Dawoud at iman.dawoud@dowjones.com
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(END) Dow Jones Newswires
20-10-12 1035GMT
