Saudi Arabia's consumer prices fell 1.9 percent year-on-year in April 2019, following a 2.1 percent decline in the previous month. It was the fourth consecutive month of deflation, as the impact of VAT implementation in 2018 faded. Prices dropped less for housing & utilities (-7.8 percent from -8.1 percent in March); furnishings & household equipment (-0.3 percent from -0.4 percent); and clothing & footwear (-1.0 percent from -1.5 percent). Additionally, cost of transport rebounded (0.3 percent from -0.9 percent). On the other hand, prices slowed for food & beverages (1.0 percent from 1.2 percent) and restaurants & hotels (1.3 percent from 1.5 percent). Also, cost of communication decreased at a faster pace (-1.2 percent from -1.1 percent). On a monthly basis, consumer prices were unchanged, after falling 0.1 percent in the prior month. Inflation Rate in Saudi Arabia averaged 2.55 percent from 2000 until 2019, reaching an all time high of 11.10 percent in July of 2008 and a record low of -2.20 percent in February of 2019.
Inflation Rate in Saudi Arabia is expected to be -1.80 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Saudi Arabia to stand at 2.50 in 12 months time. In the long-term, the Saudi Arabia Inflation Rate is projected to trend around 3.00 percent in 2020, according to our econometric models.