Experts: Rising prices will hit middle-income group hard
Economists have warned that the effects of rising prices of fuel and a number of other services provided by the state will be felt in a period of six months and that middle-income group will be affected the most.
“Inflation might increase hardships for households especially on occasions like the Holy Month of Ramadan,” they said, urging Saudi families to change their pattern of consumption, local media reported on Sunday.
Abdulwahab Mohammad, an academic, was quoted as saying that the increasing prices of some commodities are closely linked with the everyday life of citizens, including energy.
“Some of the implications are already being felt on the budgets of households. The difference in the expenditure levels between the time before and after the increase in prices will stand at 46 percent and this will be mostly manifested during Ramadan and the seasons during which Saudis are used to spending more,” he said.
The economic downturn always leaves its impact on the low-income group before gradually affecting the majority of the population, he said.
Mohammad Bakhraji, an economist, said a major disruption will affect expenditure by Saudis because the increase in the spending will not be met with an increase in the incomes.
“The increase in spending is the outcome of the increased energy prices and the other commodities, in addition to the growth in inflation rates linked with many life necessities,” he said.
He said that the current cost of living indicator will be associated with the new challenges and hardships, as some will try to seek a second job to meet their needs that they were once used to.