Saudi Arabia’s inflation rate edged up to 1.6% in August from 1.5% in July, driven by rising housing rents and food prices, according to government data.
Housing rents surged by 10.7% in August, contributing to an overall 8.9% increase in the prices of housing, water, electricity, gas, and other fuels, reported the General Authority for Statistics.
Previously, the inflation rate had stabilized at 1.5% in June and July, largely due to apartment rents.
Food and beverage prices rose by 0.9% in August, with a notable 4.6% increase in vegetable prices.
Price hikes were also observed in the restaurants and hotels category and the education sector. Conversely, prices fell by 3.4% in the transport sub-category and by 3.5% in the furnishing and home equipment sector.
Month-on-month, prices increased by 0.1% in August.
Despite these increases, Saudi Arabia’s inflation has remained relatively low compared to global levels this year.
The International Monetary Fund projects that Saudi inflation will average 1.9% in 2024 and 2% in 2025.