JEDDAH: Economic experts argue that the prices of goods in the local market must be reduced by 30 percent, and have appealed to the consumers to reduce their purchases in order to force merchants to bring down prices.

“Certain production factors directly affect the prices of goods, and there is a recession in the global economy. The current price of oil is not the cause but has rather resulted in a decline in the economic activity,” Mohammed bin Dulaim Al-Qahtani, a professor of economics at King Faisal University, was quoted as saying by local media.

“The relationship between the economy and economic drives is positively correlated, as if the economy moves and oil prices move, prices are also assumed to respond to such movements,” Al-Qahtani said.

Another economic expert Fadl Albueinein said that there was no correlation between what is happening in the global market and prices of goods or commodities in the local market.

“The fluctuation of currency exchange rates has had an effect on the prices of goods in the local market,” he said.

Shan Al-Zahrani, a member of the national commercial committee, said there has been no decline in the prices of essential goods despite a decline in the prices of oil worldwide. He attributed this anomaly to the fact that some goods are hoarded by suppliers.