In December, Saudi Arabia experienced a slight decrease in its annual inflation rate, which went down to 1.5% from 1.7% in the previous month. This change was largely influenced by a significant rise in housing rent costs.
Recording a 9% upsurge in December, housing rents were the primary driver behind a 7.5% increase in the overall cost of housing, as well as water, electricity, gas, and other fuel services, according to data from the General Authority for Statistics.
The month also saw a modest hike in prices for food and beverages, which rose by 1.2%, and a more noticeable 2.5% increase for restaurant and hotel services. On the other hand, sectors such as clothing, home furnishings, household products, and transportation observed a reduction in prices.
Looking at the broader picture, the average annual inflation rate in 2023 was 2.3%, as reported by the statistics authority. This figure falls below the government’s projected rate of 2.6%, with the primary contributing factors being a 7.9% rise in costs for housing and utilities, and a 1.4% increase for food and beverages.
Compared to global inflation rates, Saudi Arabia’s figures remained relatively low last year, with government strategies playing a key role in mitigating the effects of international price surges on the domestic market.