Weekly Market Brief – 7/15/2022

Saudi Arabia Macroeconomic Developments

• Annual consumer inflation rose 2.3 percent in Saudi Arabia. The main categories of food prices (+4.4 percent) and transportation prices (+2.5 percent) were primarily responsible for the increase. Restaurant and hotel prices rose 4.9 percent. Prices were stable compared to the previous month, rising 0.2 percent MoM.

• Annual producer inflation rose 8.1 percent in June, down from 10.2 percent in May. Prices of basic chemicals rose 40.2 percent in June, the highest pace this year. Metal products, machinery, and equipment rose 5.8 percent. Food products rose 9.2 percent, most notably vegetables and dairy products. Wholesale prices were also relatively stable compared to the previous month, rising 0.1 percent.

• Foreign investments in Saudi Arabia rose 15 percent YoY to SAR2.46 trillion ($656 billion) in Q1, according to the Saudi Central Bank (SAMA). Compared to Q4 2021, foreign investments were up 3 percent. Foreign direct investment (FDI) counted for 40 percent of the total while portfolio investment represented 36 percent. Other investments such as loans and currency deposits accounted for the remaining 24 percent.