Thursday, 25 July 2024

Inflation in Saudi Arabia Holds Steady at 1.6% for Third Consecutive Month in May


The annual inflation rate in Saudi Arabia reached 1.6% in May 2024, marking the third consecutive month with this rate. This increase is primarily attributed to an 8.7% rise in prices of housing, water, electricity, gas, and other fuels, as well as a 1.4% increase in prices of food and beverages. Meanwhile, prices of transportation decreased by 2.4%.

Rental prices main driver of inflation in May 2024 compared to May 2023

Actual housing rents increased by 10.5% in May 2024, influenced by a 14.3% increase in apartments rents. This increase had a significant impact on maintaining the annual inflation rate for May 2024, due to the substantial weight of this category (21.0%).

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Similarly, prices of food and beverage increased by 1.4%, influenced by a 6.9% rise in vegetables prices. Additionally, prices of restaurants and hotels rose by 2.5%, affected by a 1.9% increase in prices of food services.

Meanwhile, education sector witnessed an increase of 1.1%, driven by a 4.1% rise in the intermediate and secondary education fees.

On the other hand, prices of furnishing and home equipment decreased by 3.8%, influenced by a 5.8% decline in prices of furniture, carpets, and flooring. Similarly, prices of clothing and footwear decreased by 4.0%, driven by a 6.9% decline in readymade clothing prices. Transportation prices also decreased by 2.4%, affected by a 4.1% decrease in vehicle purchase prices.