20/10/2014
"Jadwa investment" expects stable growing in the category of housing inflation
The decline of the influence of external factors on inflation in Saudi Arabia
Economic report predicted continued decline in the influence of external factors on inflation in Saudi Arabia because of the strength of the US dollar and bleak prospects for growth in the global economy. the report issued by Jadwa investment company there is another factor that may contribute to inflationary pressures, a top rated jewelry prices under the category of miscellaneous goods and services, and similar movements in gold prices, which in turn is expected to increase prices significantly because of high value in times of dwindling hopes for the recovery of the global economy. The report also predicted continued domestic inflationary factors, driven by continued strong domestic consumption and higher lending from banks, while the report maintained its forecast of stable growth in the category of inflated housing, supported in part from a marking key is smaller and also the strength of domestic demand for housing units.
As results of these factors add to expectations of continued slow inflation index, the report predicted the annual inflation rate to 2.8 percent, less than previously forecast that the inflation rate would reach 2.9%. the cost-of-living index, issued by the Central Department of statistics and information, the inflation rate remained unchanged at 2.8 percent year-on-year in September.
The two groups ' food ' and ' housing ' remained constitute the main source of inflation, which accelerated inflation on an annual basis in August and September. But core inflation, a measure estimated by Jadwa investment excludes prices of food and housing categories, slowed to 2.5 per cent, on the basis of the annual comparison, compared with 2.7 per cent in August, including most categories of core inflation. Increased contribution of food and lodging categories to 54 per cent, compared with 48 percent in the previous month, due mainly to accelerate inflation in these categories as well as the slowdown in core inflation categories. Record food inflation increased by 2.9 per cent year-on-year in September, complementing the acceleration for the second month in a row despite the continued contraction in global food prices. And on a monthly basis, food prices climbed 0.9 percent in September, compared with an average of 0.1 percent for the first eight months in 2014, due to increased prices of vegetables, fish and seafood, which increased by 5.8 per cent and 2.3 per cent respectively.
Also quickened noticeably bulge ' housing ' in September last year after a temporary slowdown in July, where accelerated to 3.4 percent year-on-year in September, compared with 3 per cent and 2 per cent for the months of August and July respectively, complementing the contribution rate reached 0.8 percentage point of inflation. And plays a rentals-which has also increased by 3.8 percent year-on-year in September-a great role in increasing the rate of inflation in housing, where the delay in government initiatives to reform the housing market means that anticipation to buy permanent housing has this, which led to the resumption of business lease and rapidly too.
Most categories recorded the basic inflation index slowed in September, where annual inflation slowed for transport, furnishing and fixtures, and other goods and services to 0.2 per cent and 3.8 per cent and 3 per cent respectively, while core inflation index decreased by-0.3 percent on a monthly basis. In the categories of clothing recorded and other goods, the largest monthly retreats by-0.8 per cent, and that transport category — the third highest weight of cost-of-living index-basket have registered a decline of 0.4 percent on a monthly basis, as the stability of core inflation index reflects seasonal movement.
