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Last month, inflation had hovered below 6 percent
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Transport prices gained 22.6% and food and beverages prices rose by 8.1%
For the first time this year, inflation in Saudi Arabia has surged to 6.2 percent in June, accelerated mostly by the cost of food and fuel.
Last month, inflation hovered below six percent, according to data from the General Authority for Statistics (GSTAT) published on Thursday. Transport prices gained 22.6 percent and food and beverages prices rose by 8.1 percent, the national statistics body said.
Consumer prices still reflect an increase of the value added tax (VAT) from 5 percent to 15 percent in July 2020, according to Arab News.
“Looking ahead, the headline inflation rate is likely to peak in June at around 6.3 percent year-on-year,” James Swanston, Middle East and North Africa economist at London-based Capital Economics, said in a research note, last month.
Saudi Arabia announced a price cap on fuel on Saturday, to support local consumption and economy growth, as oil prices hit multi-year highs this year.
The Kingdom issued a royal directive to keep fuel prices at SR2.18 ($0.58) for octane 91 and SR2.33 for octane 95, SPA reported, citing the Energy and Water Price Reforms Executive Committee.