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Saudi Arabia's inflation records 22-month high in June

Saudi Arabia's inflation records 22-month high in June
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Riyadh - Mubasher: The headline seasonally adjusted S&P Global Saudi Arabia Purchasing Managers’ Index (PMI) increased to 57.0 in June from 55.7 in May, marking the highest level since October 2021 and reflecting a strong improvement across Saudi Arabia's non-oil private sector economy.

Despite the sharpest rise in new businesses for eight months, inflation pressures hiked to a 22-month high in June amid increases in fuel and raw material prices, according to a press release on Tuesday.

The improved business conditions were driven by a surge in new order inflows and a strong boost in output.

Meanwhile, confidence registered its strongest level since the beginning of 2021 amid a greater degree of optimism for future activities, which led to a further increase in employment and stock building of items facing supply shortfalls.

The Economist at S&P Global Market Intelligence, David Owen, said: "The upturn was underlined by a robust increase in new business levels, which encouraged firms to expand their output sharply and make greater input purchases."

Owen added: "While some companies reported concerns that sustained price rises could put a brake on the current path of growth, the latest survey data signalled overall output confidence picking up to a 17-month high."