Saudi Arabia’s annual inflation rate reached 1.6% in August year-over-year, driven primarily by increased housing costs, according to official data.
The General Authority for Statistics reported a 10.7% rise in actual housing rents, with apartment rents specifically increasing by 10.8%.
Despite these increases, Saudi Arabia’s inflation remains one of the lowest in the Middle East and North Africa, a testament to the Kingdom’s effective economic stabilization measures.
“The rise in housing costs significantly impacted the annual inflation rate for August 2024, given that this category represents 21% of the total,” stated the General Authority for Statistics.
Food and beverage prices saw a modest increase of 0.9%, and restaurant and hotel expenses rose by 1.6% during the same period.
Education costs increased by 1.6%, driven by a 3.8% hike in intermediate and secondary education fees.
Conversely, prices for furnishing and home equipment fell by 3.5%, with furniture, carpets, and flooring costs dropping by 6.2%. Clothing and footwear prices also decreased by 3.2%, and transportation expenses were down by 3.4% compared to August 2023.
On a monthly basis, the consumer price index edged up by 0.1% in August. This was influenced by a 0.4% rise in housing, water, electricity, gas, and other fuel costs.
Food and beverage prices saw a month-on-month increase of 0.4%, while restaurant and hotel expenses grew by 0.2%.
Prices for education, personal goods and services, health, communications, and tobacco remained relatively stable compared to July.