Saudi inflation pressure to continue in 2nd quarter

Inflationary pressures are likely to continue in Saudi Arabia in the second quarter, the central bank said in a report published on its website. “The available data points to an expectation of continued inflationary pressure... during the second quarter of 2012,” said a quarterly inflation report issued by the Saudi Arabian Monetary Agency (SAMA). It singled out rent and food as two main areas of expected price pressure during the current quarter. Annual inflation slowed to 5.3 percent in April from 5.4 percent in March, according to figures released by the Central Department of Statistics. Prices rose on the month by 0.2 percent, the department said. Saudi Arabia, the world's top oil exporter, suffers from a housing shortage that drives up real estate prices. Last year the government promised to build half a million new homes at a cost of $67 billion. In another sign of inflationary pressure, bank lending to the private sector rose 4.7 percent in the first quarter, its largest quarterly jump for more than two years.