Rents in Saudi Arabia are expected to decline further as more housing supply enters the market, the central bank governor said on Tuesday.

Speaking at a news conference, Muhammad al-Jasser said rents would decline due to the 'vigorous reaction by construction sector to (the) shortage.'

Annual inflation in Saudi Arabia fell to 4.2 per cent in July from a record 11.1 per cent a year earlier, due mainly to a slowdown in the rise of home rents and food prices.-Reuters