GASTAT: Consumer Prices increase by 1.2% in December 2021

Saudi General Authority for Statics (GASTAT) revealed on Thursday that in December 2021, the Consumer Price Index (CPI) increased by 1.2% compared to December 2020, higher than November 2021 (1.1%).

The rise of the CPI resulted mainly from higher prices of Transport 7.2% and Food and Beverages 1.1%

Transport Prices Main Driver of Inflation in December 2021

Transport prices increased by 7.2%, mainly due to the increase in gasoline prices by 50.0%. Transport prices were the main driver of the inflation rate in December 2021 due to their high relative importance in the Saudi consumer basket (with a weight of 13.0%).

Food and Beverages prices increased by 1.1%, mainly due to the increase in Food prices 1.2%. In particular, vegetable prices by 6.3% in December 2021.

Communication services prices increased by 1.4%, mainly due to the increase in Telephone and Telefax Services prices by 2.3%.

Education prices increased by 4.8%, mainly resulting from an increase in Secondary education prices by 13.6%. Restaurants and Hotels prices increased by 1.8%, mainly resulting from an increase in Catering services prices by 1.3%. Recreation and Culture prices increased by 2.8%, due to the rise in holidays packages prices by 3.4%.

Contrarily, Housing, Water, Electricity, Gas, and other Fuels prices declined by 1.6% due to the decline in the actual rentals for housing by 1.9%, as well as Clothing and Footwear prices by 1.6%, due to a decrease in Clothing prices by 1.0%.

Prices relatively stable compared to November 2021

Compared to November 2021, consumer prices remained relatively stable and slightly decrease by 0.1%.

The monthly inflation index was affected by a decrease in Food and Beverages prices by 0.7%, mainly due to a decrease in Food prices by 0.8%, which in turn was affected by a decrease in Meat prices by 1.1%.

Housing, Water, Electricity, Gas, and other Fuels prices decreased by 0.1%, due to a decrease in the actual rentals for housing by 0.2%, as well as Prices of Furnishings, Household Equipment & Maintenance by 0.2%,and Clothing and Footwear prices by 0.1%.

Contrarily, Recreation and Culture prices increased by 0.6%, as well as, Restaurants and Hotels by 0.3%, Transport by 0.3%, Communication services by 0.2%, Tobacco by 0.1%, and Miscellaneous Goods and Services by 0.1%.

On the other hand, prices for Health, Education, did not register any significant changes in December 2021.