Riyadh - Decypha: Saudi Arabia's deflation, the first experienced in more than a decade, eased in February, according to report by the country's Central Department of Statistics.
Prices fell by 0.4 % in February, with deflation easing to -0.1 %, following a 4%increase in January 2016.
Food and beverage prices fell 3.4%, housing and utilities prices rose by 1.4%, and transport costs decreased by 2.7% according to the report.
“Looking ahead, government initiatives aimed at stimulating private sector activity should have a positive impact on aggregate demand, and therefore inflation,” wrote Fahad Alturki, Head of Research at Jadwa Investment, reported Forbes.
Inflation is expected to remain stable in the first six months of 2017, before hiking up during the second half of the year, according to experts.
The Kingdom experienced price deflation for the first time in a decade in February due partly to weakness of Saudi economy and low oil prices impact on governments export revenues, reported Yahoo Finance.
By Decypha News Editorial Team
