Saudi Central Bank Says Expects Relatively Stable Inflation Rates In Q4

Saudi Arabia’s central bank expects inflation to be relatively stable in the fourth quarter of this year due to the strengthening dollar and easing food price pressures, a report showed on Monday.

“The inflation rates in the Kingdom are expected to be relatively stable during the fourth quarter of 2014 in line with the increase in the value of the U.S. dollar and the decline in inflationary pressures on the major groups affecting the general index, particularly the group of food and beverages,” it said in its quarterly inflation report.

Inflation in the OPEC member, which pegs its riyal currency to the dollar, eased to an annual 2.6 per cent in October from 2.8 per cent in the previous month.

Analysts polled by Reuters in September expected average inflation to slow to 3.0 per cent in 2014 from 3.5 per cent in 2013.