Inflation to continue at moderate pace: central bank

JEDDAH: Saudi Arabia's central bank expects inflationary pressures in the biggest Arab economy to continue at a moderate level in the third-quarter of this year, it said on Saturday.

"Data shows the possibility of continuation of inflation pressures within moderate levels during the third-quarter of 2011,"

Annual inflation in the kingdom edged up to 4.9 percent in July, from 4.7 percent in June, on rising prices of food, products and services, while monthly inflation was the fastest since early 2008, data showed this week.

Analysts polled by Reuters in June expect average inflation in the world's top oil exporter to reach 5.6 percent in 2011.

Consumer prices are expected to climb further this year due to surging global food prices and following a government announcement that it plans to spend more than $130 billion on social projects.

Copyright Reuters, 2011