Dr. Muhammad Makni, Dean of the Faculty of Economics and Administrative Sciences of Al-Imam University, said the Saudi Statistical Authority’s report on inflation released yesterday, Wednesday, is positive and indicates that the government’s fiscal and monetary policies are proceeding in a great way alongside the recovery and solidity of the Saudi economy.
And while you assist inflation rates Jumps to the level of the year, Makni attributed the decline in the rate of inflation in the Kingdom to factors including the attenuation of the direct impact of the increase in value added tax, considering that consumers are used to the presence of the tax. . He also added that the price index has fallen in two important sectors, namely housing, after economic reforms, and a number of non-Saudis who have left the Kingdom have left room in rents and housing, as well as education costs which have fallen due to the period of the Corona pandemic, where the sector is also an important weight in the inflation index.
Data from the Saudi General Authority for Statistics showed indicators reflecting the significant drop in education and housing prices in Saudi Arabia, which pushed inflation rates close to zero in August.
Contrary to the trends of the high global inflation rate, the consumer price index in Saudi Arabia slowed in August to 0.3% yoy.
The inflation rate in August stood at 0.1% on a monthly basis, with the largest contribution to the slowdown in inflation due to falling education prices. in in particular the decline in the prices of pre-primary and primary education and of education media and secondary.
On the other hand, Makni said that the transport and food sectors have seen an increase in prices, which is normal, as transport represents a high percentage in the index and is a link with economic activities and is directly affected by fuel prices which have risen in the recent period.
Dean of the Faculty of Economics and Administrative Sciences of Al-Imam University believes inflation levels are rising in all over the world, and the Kingdom is part of it, so it is natural that there will be an impact of this wave, but official data indicates that it is possible to control inflation by creating a process of equilibrium through economic reforms and fiscal and monetary policies, as well to increase the contribution of non-oil production to the economy.
Makani expects price inflation to see a greater decline in the Kingdom, which will affect the economy.
Read More About: Business News