RIYADH: Saudi Arabia’s inflation rate could move upwards from 1.7 percent to 2.4 percent in 2022, according to a revised forecast by Jadwa Investment.

According to the Jadwa report, recent developments related to the Russia-Ukraine conflict have pushed inflation expectations in many parts of the world including Saudi Arabia upwards, and there has been a sizable price impact on commodities including wheat, oil and natural gas in recent weeks.

The cost of purchasing wheat in Saudi Arabia has risen 40 percent in 2022, the report stated.

It should be noted that Saudi Arabia had sourced around 45 percent of all its wheat from Russia and Ukraine last year.

Meanwhile, another wave of COVID-19 in China has already strained global supply chains, translating into higher import costs from key trading partners like Saudi Arabia.

Moreover, higher consumption of food and beverages during the holy month of Ramadan is expected to add to food related price pressure locally, albeit temporarily.