An increase in food and transport cost causes the world?s top oil exporter, Saudi Arabia to face an annual inflation that inched up to 4.8 per cent in April. Analysts expect price pressures to grow in the next few months.
With inflation on a gradual yet increasing path, living costs rose by 0.4 per cent in April (data from the Central Department of Statistics), including housing and energy costs, which rose by 0.5 per cent after a 0.8 per cent increase in the previous month.
The spreading unrest across the Gulf he government plans to spend nearly 30 per cent of the annual economic output to ease social tensions in the kingdom, where over 10 per cent of nationals are out of work.
As the holy month of Ramadan draws near, the price pressure is expected to build as families enjoy larger and more elaborate meals after daylight fasting. Saudi?s Central Bank Governor Muhammad Al Jasser said in March handouts by the king to boost wages, create jobs and build?houses were not likely to exacerbate inflation.