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Saudi could see higher inflation in 2010

Saudi could see higher inflation rates in 2010 because of…

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November 9, 2009 4:44 by



Saudi could see higher inflation rates in 2010 because of the depreciating dollar and increasing commodity prices, according to a report released by the Saudi-based National Commercial Bank (NCB).

“With domestic demand expected to recover in 2010, Saudi Arabia may be at a risk of higher inflation if the US dollar depreciates further. This, however, will not alter the position of Sama (central bank), which has kept interest rates at the same level since its last cut in June,” the report said.

Inflation in the kingdom increased from 4.1 percent in August to 4.4 percent in September, its first rise in four months, says Reuters.



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