A group of 19 prominent Saudi Muslim clerics has issued a rare warning to Saudi leaders that they must take action to curb increasing prices of basic commodities, which has prompted public anger at the kingdom.
A near five-fold increase in oil prices over the past five years has helped the government post large budget surpluses, but Saudis are feeling the pinch from a rise in prices of basic foodstuffs in recent months mainly due to a drop in the US dollar to which the riyal currency is pegged.
Annual inflation accelerated to 5.35 per cent in October, its highest in at least a decade and Saudis are looking to their rulers to take action. Rents and food costs were the main drivers of inflation, the Saudi Central Department of Statistics said in a statement earlier this week. Inflation was running at 4.89% in September.
In Internet forums where they can express views with anonymity, Saudis have blamed the US-allied government's insistence on pegging the riyal to the US dollar.
"We direct this message to the rulers and officials: we remind you of Prophet Mohammad's words that you are shepherds who are responsible for your flock," the group of 19 well-known clerics, including Nasser al-Omar, said in a statement.
"The rulers should seek to try to remedy this crisis in a way that would ease people's suffering," it said, according to Reuters, proposing measures including raising subsidies, removing some fees on services and offering direct financial help to families.
Several of the signatories teach at Islamic universities. The statement, posted on Islamic Web sites, did not ask for an increase in public wages, a route Saudis have seen other Gulf Arab countries follow. Some major companies have decided to raise wages by up to 40 per cent to offset the impact of rising prices.
The government this month raised subsidies on rice and baby milk. A royal decree said the government would pay a subsidy of 1,000 riyals (US$266) per ton of imported rice and increase the subsidy on baby milk to 12 riyals per kilograms from 2 riyals. Rice and Milk are the two important commodities in the kingdom.
The clerics' statement also warned merchants against exploiting the situation by hoarding commodities and said consumers should rein in spending and give more Islamic alms. "This crisis will have a negative impact on all levels, causing theft, cheating, armed robbery, and resentment between rich and poor," the statement said.
