JEDDAH: Saudi Arabia’s Central Department of Statistics has released the March consumer price data, showing inflation at its lowest level since at least September 2012, when the current data series began.

The March inflation was at 2 percent down from 2.1 percent in February and 2.6 percent in January.

Prices of housing and utilities increased 2.2 percent from a year earlier in March, while food and beverages rose 1.7 percent.

The data are based on the 2007 consumer basket with the series beginning in September 2012, Reuters reported.

In a recent report, Jadwa Investment said Saudi inflation has been consistently falling for six consecutive months to reach 2.1 percent in February.

The continued deflationary trend in international food prices has meant that prices for foodstuffs remained below 2 percent year-on-year.

A strengthening US dollar also played a part in adding to downward pressure on import costs, and consequently, inflation.

Since the beginning of the year, the US dollar continues to strengthen against most other major currencies

“Nevertheless, we see an upside risk to inflation for the remainder of the year, driven mainly by domestic inflationary pressures,” Jadwa researchers said the quarterly Oil Market Update.

“The liquidity injection as a result of the January royal decrees have already pushed up monetary aggregates, and are likely to contribute to further inflation in the short-term,” stated the report.

“This should leave housing inflation as the major source for inflationary pressure during 2015 as rents rise due to the continued shortage in housing units. We expect inflation to average 2.5 percent this year,” said the report.