Saudi Arabia: CPI inflation slows in July

CPI inflation in Saudi Arabia slowed to 2.1% y/y in July, with housing & utilities being the major driver.
Housing inflation slowed to 5.6% y/y in July, down from 6.5% previously, supported by base effects and government efforts to boost supply.
Modest price growth will be supportive of private consumption, and consumer spending was up 8.8% y/y in June.
We forecast non-oil GDP growth for Saudi Arabia at 4.5% for the year, contributing to a headline growth rate of 3.7%.

Daniel Richards