Saudi inflation jumps to 3.0 percent on VAT, fuel price hike

Inflation rates in Saudi Arabia soared in January after the government introduced a string of price hikes to boost non-oil revenues, authorities said on Sunday.

Rates rose three percent in January compared to the same period the previous year, the General Statistics Authority said in a report on its website.

The jump was even starker in December, having jumped 3.9 percent since the previous year.

In January, government-set prices at the pump roughly doubled, electricity costs were sharply hiked and a five-percent value-added tax (VAT) was imposed for the first time.

Over the last 12 months, costs of transport have gone up 10.5 percent while food and beverages surged 6.7 percent, the report said.