Saudi Arabia's annual inflation eased to a nine-month low of 5.1 percent in May, despite a slight rise in food and housing prices, official data showed Saturday. Consumer prices slowed to 5.1 percent in May from 5.3 percent in the same month a year earlier, while monthly inflation remained unchanged from April at 0.2 percent, data from the Central Department of Statistics (CDS) showed. Food prices increased by 0.1 percent and housing and rental items rose by 0.2 percent. Home repairs, fuel and water supply prices remained unchanged for the month while furnishing and kitchen appliances prices have declined by 0.3 and 0.1 percent, respectively. In May, the central bank said in a report that it expects inflationary pressures to continue in the second quarter. The CDS said in February that it expected relative price stability or even a slight decline in inflationary pressures in the near term. Saudi Arabia suffers from a housing shortage that drives up real estate prices. Last year the government promised to build half a million new homes at a cost of $67 billion. The largest Arab economy expanded by an officially estimated 6.8 percent in 2011. It is forecast by a Reuters poll of analysts to grow 4.0 percent this year, but that estimate could be exceeded if oil prices remain high and Saudi Arabia produces more oil. Stocks close flat Saudi shares closed flat Saturday after rising slightly in early trade. The stock benchmark Tadawul All Share Index closed at 6,663.03 points, inching up 0.03 percent as the banking sector added 0.5 percent at 15,219 points. Heavyweight Al Rajhi Bank gained 1.4 percent while petrochemical giant Saudi Basic Industries (Sabic) added 0.3 percent. The petrochemical index closed flat at 5,921 points. Brent July crude fell 46 cents to settle at $99.47 a barrel Friday. Earlier in the day the shares opened higher led by gains in the petrochemical and banking stocks with the all-share rising 1.2 percent to hit 6,740 points.
