Saudi Arabia may continue to see inflationary pressures in the second quarter of this year mainly due to rent and food prices, the Saudi Arabian Monetary Agency (SAMA) said Saturday. But recent data shows that inflation rates in 2012 are growing at a slower rate than those of 2011, SAMA said in a report posted on its website. For instance, first quarter inflation rate slow downed to 0.6 percent compared with 1.5 percent in the same period last year. Saudi Arabia's annual rate of inflation edged down to 5.3 percent in April from 5.4 percent in March, mainly due to lower food prices, data from the Central Department of Statistics and Information showed Thursday. Rent, fuel and housing-related services rose 9.2 percent in April from a year earlier, compared with an 8.9 percent jump in March. Food and beverage prices dropped 4.3 percent from a year earlier, compared with a 5.1 percent rise in March, the CDSI said. SAMA has repeatedly said that inflationary pressures caused mainly by an increase in global food prices are worrying, but the central bank sees no need to change interest-rate policy. Economists expect inflation in the Kingdom to remain higher than its historic average of 1 percent as the government continues to post expansionary budgets. Rents and property prices in the Kingdom are rising, which could push the annualized inflation rate as high as 7 percent later this year, up from 5.2 percent in 2011.
