The Saudi General Authority for Statistics (GASTAT) has issued its Price Consumer Index (CPI) report for August 2024.
The report revealed that the increase of the prices of housing, water and energy has impacted the annual inflation rate, compared to the previous year.
Inflation Rate
The report indicated that the annual inflation rate in Saudi Arabia reached 1.6% in August 2024, compared to August 2023. This was a result of a rise in the prices of housing, water, electricity, gas and other fuels by 8.9%.
It was also driven by an increase in the prices of food and beverages by 0.9%. On the other hand, the report showed a decrease in the prices of transportation by 3.4%.
The inflation rate in Saudi Arabia is one of the lowest in the Middle East and North Africa region. This emphasizes the Kingdom’s commitment to take proactive measures in order to stabilize its economy and help cushion the impacts of rising global prices.
Housing Prices
The GASTAT report pointed to an increase in the actual housing rents by 10.7% in August 2024 compared to the same month last year. This was the result of a rise in apartment rental prices by 10.8%.
The report said that 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%).”
In July, the actual housing rents rose by 11.1%, driven by a 12% increase in apartment rents. This marked the highest increase in housing rents since 2013.
Food and Beverages
In a similar way, the prices of food and beverages increased by 0.9% in August 2024, due to a 4.6% increase in vegetable prices.
Additionally, the prices of restaurants and hotels rose by 1.6%, driven by a 1.6% rise in the prices of catering services during the same period.
In July, however, the food and beverages sector saw a 0.4% increase, due to a 5.3% rise in vegetable prices, while restaurants and hotels recorded a 2.3% increase, impacted by a 7% surge in hotel and furnished apartment prices.
Other Sectors
The increase in fees for intermediate and secondary education by 3.8% has led to a 1.6% rise in the education sector prices in August. These figures indicate no change from July.
Meanwhile, the prices of furnishing and home equipment declined by 3.5% in August, as a result of a decrease in furniture, carpets, and flooring prices by 6.2%.
Similarly, clothes and footwear sector saw a decrease in prices by 3.2%, driven by a 5.6% decline in ready-made clothing prices. Moreover, transportation prices decreased by 3.4%, influenced by a 4.9% decline in vehicle purchase prices.
Consumer Price Index
The CPI is calculated by tracking the prices of a fixed basket of 490 goods and services, weighted according to the household income and expenditure survey conducted in 2018. The GASTAT publishes the CPI statistics monthly.
The data showed that Saudi Arabia’s consumer price index slightly increased by 0.1% in August 2024, compared to July of the same year.
This monthly inflation was influenced by a 0.4% increase in the prices of housing, water, electricity, gas, and other fuels. This increase was a result of a 0.5% rise in actual housing rents and prices.
The index also indicated a 0.4% increase in the prices of food and beverages compared to July, influenced by a 1.8% increase in vegetables prices.
On the other hand, the prices of restaurants and hotels recorded a 0.2% decrease, while transportation decreased by 0.2%, clothing and footwear by 0.6%, furnishing and home equipment by 0.4%, and recreation and culture by 0.1%.
Meanwhile, the prices of education, personal goods and services, health, communications, and tobacco did not show any significant change in August 2024.
