IMF warns Saudi Arabia of inflation

The International Monetary Fund has warned Saudi Arabia of a possible inflation risk, urging the kingdom to take preemptive measures against the potential risk.

In a regular assessment of the oil-rich countryâ„¢s economic health, the IMF on Monday urged Riyadh to remain vigilant against future oil price uncertainty.

The kingdomâ„¢s overall growth is expected to be moderate partly because of a probable fall in oil output in 2013 compared to the year before.

This comes as the inflation in the country has risen to around 4 percent.

Å“If inflation were to pick up more than expected or evidence of supply bottlenecks were to emerge, then either macro-prudential policy would need to be adjusted or capital spending projects slowed,” the IMF said in a statement at the end of a staff mission to Saudi Arabia for the review.

The IMF also called on Riyadh to further develop Å“fiscal tools, including those dealing with oil price uncertainty.”

MR/HN

This article originally appeared on : Press TV