Riyadh – Mubasher: Saudi Arabia’s annual inflation rate is forecast to rise during the third quarter (Q3) of 2020, largely impacted by the hike in the value-added tax (VAT) to 15% from 5%.

The summer vacation period has seen a relative increase in prices, according to a recent report by the Saudi Arabian Monetary Authority (SAMA).

In Q2 of the year, the kingdom’s Consumer Price Index (CPI) rose by 1% when compared to Q2-19, but fell by 0.2% when compared to Q1-20.

In June, the CPI levelled up by 0.5% year-on-year (YoY), 1.1% below May’s reading, mainly driven by higher average prices of food and beverages, and miscellaneous goods and services groups by 6.4% and 1.8%, respectively.