Government | Saturday 14 February, 2015 11:49 am |

Saudi Arabia’s inflation fell to 2.2 percent in January, according to official data.
The Central Department of Statistics released the January consumer price data on Thursday, showing inflation at its lowest level since at least September 2012, when the current data series began.
Prices of housing and utilities increased 2.7 percent from a year earlier, while food and beverages rose 2.1 percent.
The data are based on the 2007 consumer basket with the series beginning in September 2012.
The strengthening of the greenback is a key factor in lowering imported inflation which increased the purchasing power of the Saudi riyal, particularly against commodities, economists pointed out in the NCB Saudi Economic Review for January 2015.
According to the NCB report said that the lowest annualized growth in the general cost of living index (CLI) of 2.4 percent in December, brought average inflation in 2014 to 2.7 percent.
Food and beverages, the largest category affecting consumer prices in the Kingdom, recorded a 2.6 percent upturn. It is notable by annual comparison that a deceleration in food prices occurred in 2014, whereas in 2013, food prices soared by over 5.8 percent, stated the NCB report.

Housing and utility prices are also downward trending, recording 2.5%, the lowest since December 2011.
Although most of the drag in this category comes from an 11 percent decline in water supply bills, housing rentals also moderated to 3.2 percent, the lowest since July.
The only category that reached a double-digit price increase in 2014 was recreation and culture related items which soared during the peak of summer festivities in August to 10.9 percent before retreating to 9 percent by December.
The main contributor to the price level increase in this category was a 28.5 percent spike in equipment for the reception recording for sound and pictures, added the report.