Saudi Arabia annual inflation rate reaches 1.7% in September 2024

The annual inflation rate in Saudi Arabia reached 1.7% in September 2024 compared to September 2023. This is primarily attributed to the rise in the prices of housing, water, electricity, gas, and other fuels by 9.3%, as well as the increase in prices of food and beverages by 0.8%. Meanwhile, prices of transportation decreased by 3.3%.

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

The Housing, Water, Electricity, Gas and Other Fuels Section increased by 9.3%, which was affected by the increase in the group of rents paid for housing by 11.2% in September 2024, affected by the increase in apartment rental prices by 10.0%, and the increase in this section had a significant impact on the continuation of the annual inflation pace for the month of September 2024 due to the weight formed by this section, which amounts to (25.5%).

Similarly, food and beverage prices increased by 0.8%, influenced by a 5.2% rise in vegetables prices. Prices in the restaurants and hotels sector also rose by 1.7%, driven by a 1.5% increase in catering service prices.

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

On the other hand, prices of furnishing and home equipment decreased by 3.7%, influenced by a decline in furniture, carpets, and flooring prices by 7.0%. Similarly, clothing and footwear prices decreased by 3.2%, influenced by a 5.5% decline in ready-made clothing prices.

Transportation prices also decreased by 3.3%, affected by a 4.5% decrease in vehicle purchase prices.

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

In September 2024, the consumer price index recorded a slight increase of 0.1% compared to August 2024. This monthly inflation index was influenced by a 0.6% rise in housing, water, electricity, gas, and other fuels, which in turn, was affected by a 0.8% increase in actual housing rents and prices.

The index also witnessed an increase in the prices of food and beverage by 0.3%, driven by a 1.6% rise in vegetables and prices. Restaurants and hotels along with personal goods and services both increased by 0.1% . However, the index witnessed a decrease in the prices of transportation by 0.4%, recreation and culture by 0.3%, furnishing and home equipment by 0.3%, clothing and footwear by 0.2%, communications by 0.1%, and tobacco by 0.1%.

On the other hand, prices of education and health did not show any significant change in September 2024.