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Saudi Arabia’s inflation rate hits 5.7% in May; wholesale prices up

Saudi Arabia’s inflation rate hits 5.7% in May; wholesale prices up
Consumer prices still reflect an increase of the VAT

Riyadh – Mubasher: The Consumer Price Index (CPI) of Saudi Arabia went up 5.7% in May this year, compared to the same month in 2020, according to official figures on Tuesday.

The inflation rate in May was also higher by 0.2% than April, when it reached 5.3%, the Saudi General Authority for Statistics (GaStat) revealed. This was due to higher transport prices by 0.5%.

The increase in the Kingdom’s inflation rate last month was mainly attributed to a 7.4% rise in the prices of food and beverages, and a 19.3% increase in the transport group.

Consumer prices still reflect an increase of the value-added tax (VAT) from 5% to 15% in July 2020, GaStat noted.

On the other hand, prices for education went down 9.1% due to a 14.3% plunge in prices of pre-primary and primary education and 11% in secondary education.

Wholesale Prices

As for the Wholesale Price Index (WPI), it rose 17.5% in May 2021 compared to the same month last year.

The increase of the index resulted from a 22.5% rise in prices of other transportable goods, in addition to the overall impact of the increase of the VAT.

On a monthly basis, Saudi Arabia’s wholesale prices rose 1.8% in May compared to April, when the index was up 13.2%. The rise was mainly attributed by the increase in prices of other transportable goods by 3.4%.