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Saudi Arabia announced on Monday that it would provide citizens directly with 20 billion riyals (US $ 5.3 billion) to mitigate the effects of inflation and rising prices.
King Salmanbin Abdulaziz Arsaud has approved a royal decree to allocate 20 billion riar to financial support “to protect beneficiary families from the effects of global price increases,” the Saudi Press Agency (SPA) said. I reported.
The decree was issued in the light of an investigation by the Economic Council, chaired by Crown Prince Mohammed bin Salman bin Abdulaziz.
“A royal decree has been issued to approve the allocation of 20 billion SR as financial support to combat the effects of rising global prices,” the SPA reported.
About half of it will be distributed as direct cash transfers to citizens and will be allocated to the Citizens Account Program and the Small Livestock Breeder Support Program.
The royal decree took place on the same day as Prince Mohammed, who chaired the Economic Council at the Alsalam Palace in Jeddah.
The prince “emphasized the need to take into account the poorest citizens in the face of international development, which has increased the cost of some basic needs,” the SPA reported.
He also reportedly discussed the need for government ministries to monitor the development of supply chain issues affecting domestic markets and price levels in order to combat unfair practices.
Rising consumer prices
Saudi Arabia’s latest consumer price index (CPI) for May showed a 2.2% increase compared to May 2021. Official figures show that this was just below the inflation rate of 2.3% in April.pdf).
The main drivers of CPI inflation in May were rising food and beverage prices (+ 4.2%) and transportation (+ 4%).
Meat costs were the biggest contributor to rising food prices in May. In Saudi Arabia’s consumer baskets, food and beverages are relatively important, with a weight of 18.8%.
Transportation, education, hotels and restaurants have also increased. The highest prices were caused by increased food costs.
The 2.1% increase in personal goods and services is primarily due to the 17.2% increase in wedding hall rental prices.
Prince Mohammed said he needed to monitor markets, product availability and price levels, protect fair competition and combat “exclusive practices that affect legitimate competition and consumer interests.” rice field.
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Caden Pearson is an Australian-based reporter. He has a background in screenwriting and documentary. Contact him at [email protected]
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