28/11/2014 06:33 AST
Saudi Arabia’s bank lending growth to the private sector accelerated to 15.7 percent year-on-year in October, the fastest rate since May 2013, from 13.2 percent in the previous month, data from Saudi Arabian Monetary Agency (SAMA) showed.
Money supply (M3) growth rose to an annual 14.7 percent in October, the highest rate since July 2013, from 13.4 percent in September, according to the data cited by Reuters.
SAMA’s net foreign assets edged down to SR2.753 trillion ($733.7 billion) from SR2.762 trillion in September.
They were up 3.6 percent from a year ago, the slowest growth since May 2010.
A SAMA report earlier said Saudi Arabia’s inflation rates are expected to be relatively stable during the fourth quarter of 2014 in line with the increase in the value of the US dollar and the decline in inflationary pressures on the major groups affecting the general index, particularly the group of food and beverages.
Saudi Arabian Monetary Agency’s (SAMA) monetary policy and financial stability department has made this prediction in its inflation report for the third quarter of this year.
It pointed out that inflation rates in the third quarter of 2014 were affected by the increases recorded in the group of recreation and culture, the group of food and beverages, the group of furnishings and household equipment and the group of clothing and footwear.
The group of housing, water, electricity, gas, and other fuels registered the highest ratio of effect on the general inflation rate in September 2014, recording an effect ratio of 25.1 in September.
The annual cost of living index registered a rise of 2.8 percent in September 2014 as compared to the corresponding month of the preceding year, while the average inflation rate for all months of the third quarter of 2014 was stable at 2.8 percent as a result of the rise in the group of recreation and culture.
According to the SAMA report, the IMF projections for primary commodity prices indicate a contraction in the inflationary pressures on the main groups for 2014, except for the group of beverages and the group of raw agricultural material which are expected to rise by 19.6 percent and 2.4 percent, respectively. Hence, the general price index for primary commodity prices in the global markets is projected to register a deflation of -2.3 percent in 2014 compared to the preceding year.
It said that the annual cost of living index registered an annual increase of 2.8 percent in September 2014, as compared to a monthly rise of 0.2 percent.
During the third quarter of 2014, it registered an annual increase of 2.8 percent, against a quarterly rise of 0.8 percent.
The general cost of living index rose by 0.8 percent in the third quarter of 2014 as compared to the preceding quarter, and by 2.8 percent compared to the corresponding quarter of the previous year, according to the report.
Arab News
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