Surprise rise in inflation rate in September, that got it out of "acceptable" range, taking to 5.3 percent, came as a result of prices soaring in different group, the "others" group. The group of renovation and rents did not increase much, only 0.6 percent on the same monthly basis. The increment of the group "other goods and services" was far larger, it came at more than 3.9 percent. This sudden rise prompted me to search about the components of this group. I found that personal goods rose sharply by about 11 percent, but I was not able to find out what are these goods specifically. The Central Department of Statistics & Information tracks the prices of 402 services and commodities to come up with the CPI, but I found no reference to these goods and services!

The lack of information reduces the value of any analysis or study using such data. Although the inflation rate is concerned with the macro-economics of the country, however, if reflected in greater transparency it may come in handy to households on micro-economics level. My expectation is that these goods are also imported as they are "personal" and do not fall under any of the major groups. Additionally, the lack of local industrial base that produces most of the personal products that the consumer needs, as well as lower relative value in the countries of origin, all that together makes it part of the imported inflationary pressures.

Prospects of a rise in inflation today seem higher than what it was in August. Most developed economies are suffering from the surprise gains in the rates of inflation. The United States inflation rate rose to 3.8 percent, in the euro zone it reached 3 percent, and in the UK the level is much higher at 5.8 percent. But the bigger concern is the rise in inflation in developing countries, that exporters of consumer items such as China where inflation reached 6.1 percent and India where it exceeded 8 percent. Furthermore, the dollar is back again to a downward momentum against other major currencies.

The monetary policy of SAMA cannot control inflation, especially that of the imported type. If SAMA tightens its monetary policy, it will affect the private sector and needed growth in that sector negatively. The solution lies in expanding the industrial base and organizing the real estate market. A new government body can be created with a mandate to tackle inflation using non-monetary tools. This body will facilitate internal investments that make consumer products to reduce dependency on imports.