Saudi August inflation jumps to 6.2% on VAT increase

RIYADH  - Saudi Arabia's consumer price index jumped 6.2% in August compared with same month last year, the second consecutive rise after a tripling of value added tax, official data showed on Tuesday.

The annual inflation rate in July reached 6.1%, jumping from only 0.5% in June before the VAT increase to 15% from 5% came into effect on July 1.

Saudi Arabia, the world's biggest oil exporter, said in May it would triple VAT as it sought to shore up finances hit by the twin shock of low oil prices and the coronavirus pandemic.

Food and transport were major contributors to the increase, rising by 13.5% and 8.2% respectively. Tobacco prices jumped 13% while prices at resturants and hotels rose 7.7% from their level a year ago, the General Authority for Statistics said.

 

Source: https://www.zawya.com/mena/en/economy/story/Saudi_August_inflation_jumps_to_62_on_VAT_increase-TR20200915nL8N2GC13IX1/

 

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