Inflation report (July 2013): Annual food inflation at 4-year high

The Central Department of Statistics and Information released Consumer Price Index inflation data for July, showing inflation at 3.7 percent year-on-year compared with 3.5 percent in June, pushed up by higher food and rental inflation while the core index maintained downward trend. As expected, food inflation increased further in July to a 4-year high owing to a seasonal trend while strong housing demand kept the upside trend of rental inflation. International conditions provide a benign backdrop to inflation in the Kingdom particularly food prices though downward pressure is likely to be limited given strong domestic inflationary factors.