World's Only Deflation Outpost Gets Stuck in Property Malaise - Bloomberg:
Sidelined for now in the global economy, deflation is having a second act in the Gulf.
Saudi Arabia, the only country in the world where the International Monetary Fund expected consumer prices to shrink this year, is almost certain to have company from its neighbors. Qatar has seen annual price declines for nine straight months, and the United Arab Emirates is likely to be in deflation throughout this year.
The deflationary momentum began in Saudi Arabia and the U.A.E. because the introduction of value-added tax in 2018 created a high base for comparison. But what’s kept it going is a prolonged slump in housing costs that’s now putting broader price growth into negative territory.
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