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Saudi King allocates $5bn to tackle rising prices

Person, Human, Clothing Creative Commons
Saudi Arabia king Salman bin Abdulaziz Al Saud

The Saudi king has ordered the allocation of 20 billion riyals ($5.33 billion) to tackle the effects of the rising global prices, state news agency SPA reported on Monday.

Half of the allocated money will go to social insurance beneficiaries and the Citizen Account Program, it added.

Saudi Arabia’s non-oil private sector expanded in June at its fastest pace since September as demand continued to rise strongly despite the highest inflation in nearly two years, a survey showed on Tuesday.

The headline seasonally adjusted S&P Global Saudi Arabia Purchasing Managers’ Index (PMI) for the whole economy rose to 57.0 in June from 55.7 in May and April, edging above the series average since 2008 of 56.8.

“The upturn was underlined by a robust increase in new business levels, which encouraged firms to expand their output sharply and make greater input purchases,” wrote David Owen, economist at survey compiler at S&P Global Market Intelligence.

“However, the latest data also signalled an acceleration of input cost pressures, as fuel and raw material prices continued to rise in the face of global supply challenges. Notably, cost inflation was up to its highest level for almost two years, prompting a further uptick in average prices charged.”