Saudi Arabia annual inflation rate reaches 1.6% in August 2024

The annual inflation rate in Saudi Arabia reached 1.6% in August 2024, compared to August 2023. This is primarily attributed to the rise in the prices of housing, water, electricity, gas, and other fuels by 8.9%, as well as the increase in prices of food and beverages by 0.9%. Meanwhile, prices of transportation decreased by 3.4%.

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

Actual housing rents increased by 10.7% in August 2024, influenced by the increase in apartment rental prices by 10.8%. The increase in this category had a significant impact on maintaining the annual inflation rate for August 2024, given the weight this group represents (21.0%).

Similarly, food and beverage prices increased by 0.9%, influenced by a 4.6% rise in vegetables prices. Prices of restaurants and hotels also rose by 1.6%, affected by a 1.6% increase in catering service prices .

Meanwhile, the education sector witnessed an increase of 1.6%, driven by the rise in fees for intermediate and secondary education by 3.8%.

On the other hand, prices of furnishing and home equipment decreased by 3.5%, influenced by a decline in furniture, carpets, and flooring prices by 6.2%. Similarly, prices of clothing and footwear decreased by 3.2%, influenced by a 5.6% decline in ready-made clothing prices.

Transportation prices also decreased by 3.4%, affected by a 4.9% decrease in vehicle purchase prices

Prices increase by 0.1% in August 2024 compared to July 2024

In August 2024, the consumer price index recorded a slight increase of 0.1% compared to July 2024. This monthly inflation index was influenced by a 0.4% increase in housing, water, electricity, gas, and other fuels, which in turn, was affected by a 0.5% increase in actual housing rents and prices.

The index also witnessed an increase in food and beverage prices by 0.4%, affected by a 1.8% increase in vegetables and prices.

However, the index witnessed a decrease in the prices of restaurants and hotels by 0.2%, transportation by 0.2%, clothing and footwear by 0.6%, furnishing and home equipment by 0.4%, and recreation and culture by 0.1%.

On the other hand, prices of education, personal goods and services, health, communications, and tobacco did not show any significant change in August 2024.