Inflation rate growth MENA 2020-2021, by country

In 2020 post the COVID-19 pandemic, Saudi Arabia had a change in the year-to-year inflation rate of about 3.4 percent. Among the various regions of the world, it was predicted that the Middle East and North Africa (MENA) region would have the highest inflation rate in 2021.

Inflation on the rise worldwide

Inflation refers to the increase in the prices of goods and services in an economy. Global inflation has been on the rise due to many factors, including supply chain interruptions brought about after major COVID-19 lockdowns. The global inflation rate was expected to peak in 2022 compared to the previous 20 years.

Inflation in MENA

Inflation comes with varied impacts. It increases the prices of goods and services and subsequently reduces the purchasing power. In 2021, the consumer price index (CPI) of tobacco and narcotics increased to nearly 135 in Kuwait. In the United Arab Emirates (UAE), beverage and tobacco prices have similarly increased since 2016.