The inflation rate in Saudi Arabia took a modest step back in March, recording a 1.6 percent rate, a slight reduction from February’s 1.8 percent. This information was gleaned from the most recent data released by the General Authority for Statistics (GASTAT). The country’s consumer price index (CPI) edged downward, with the food and beverage sector playing a significant role in this shift.
March’s CPI figures were influenced by a 0.7 percent drop in the food and beverage segment. Prices for meat and poultry saw a noticeable decline of 0.6 percent. Other categories such as transportation, home furnishings, and equipment also registered a 0.7 percent dip. Additional sectors, including recreation, culture, communications, and tobacco, experienced price reductions as well.
Conversely, there was a 0.7 percent uptick in the category encompassing housing, water, electricity, gas, and other fuels. Personal goods and services incurred a 0.3 percent increase, while clothing and footwear prices marginally rose by 0.1 percent. Noteworthy is that education, restaurant, hotel, and health costs remained static during the month of March.
Annual inflation
On a year-over-year basis, the inflation rate in March 2024 rose by 1.6 percent, a marked contrast to the 2.7 percent seen in the same month the previous year. This annual inflation is partly attributed to an 8.8 percent surge in the category of housing, water, electricity, gas, and other fuels, coupled with a 0.9 percent increase in food and beverage costs. On the contrary, transportation costs fell by 1.8 percent, and personal goods and services by 1.1 percent when compared annually.
Notably, rental prices were the primary factor in the annual inflation climb for March 2024, with actual housing rents soaring by 10.5 percent. The restaurant and hotel sectors also felt the impact with a 2.4 percent rise, driven by a 2.2 percent hike in food service costs. The recreation and culture category saw a 0.7 percent increase, spurred by a boost in holiday and tourism expenses. Yet, the sectors of home furnishings and equipment, as well as clothing and footwear, experienced price declines.