The annual inflation rate in Saudi Arabia witnessed a rise to 1.5 percent in July, in comparison to the previous year, with a notable surge in housing-related expenses, as per the latest figures released by the authorities.
Insights from the General Authority for Statistics reveal that a 9.3 percent increase in the prices of housing, alongside utilities such as water, electricity, gas, and other fuels, was the main driver behind the uptick in the inflation rate.
As a significant component of the consumer price index, the housing sector played an essential role in shaping the overall inflation figures.
The report also highlighted a slight 0.4 percent increase in food and beverage costs on an annual basis in July, whereas transportation expenses saw a 3.5 percent reduction.
Despite global economic headwinds, Saudi Arabia’s economy has demonstrated resilience, maintaining a modest average inflation rate of 1.6 percent, a point underscored during a May session of the Council of Economic and Development Affairs.
The Kingdom’s inflation rates remain comparatively low within the region, a testament to the government’s diligent efforts to fortify the economy against the volatility of international prices.
Delving deeper into housing costs, the GASTAT report disclosed an 11.1 percent year-on-year elevation in July, with apartment rents climbing by 12 percent. “The substantial rise in this housing sector is pivotal in preserving the annual inflation rate for July 2024, given its 21 percent stake in the index,” the statistics authority explained.
Furthermore, the report indicated that costs for dining and hotel accommodations experienced a 2.3 percent year-on-year increment, propelled by a 7 percent rise in the prices of accommodation services.