Saudi January inflation jumps to 3.0 percent on VAT, gasoline price hike

Saudi January inflation jumps to 3.0 percent on VAT, gasoline price hike:

"Saudi Arabia’s annual consumer price inflation jumped to 3.0 percent in January after the government introduced a 5 percent value-added tax and hiked domestic gasoline prices at the start of the year, official data showed on Sunday.

The figures suggested the new tax and more expensive fuel, part of a government drive to cut a big budget deficit caused by low oil prices, had a large impact on Saudi consumer spending power in some areas last month. Consumer prices rose 3.9 percent from the previous month in January.

Food and beverage prices jumped 6.7 percent from a year earlier, restaurants and hotels gained 5.8 percent, and transport costs soared 10.5 percent. "



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