Saudi annual inflation rate slows to 2.9% in November

Saudi Arabia’s annual inflation rate slowed to 2.9% in November 2022 down from 3% in October, according to data from the General Authority for Statistics (GaStat).

The data, released on Thursday, indicated that November inflation was mainly driven by housing costs.

According to GaStat the housing rents rose by 5.4%, pushing the overall increase in housing, water, electricity, gas and other fuels to 4.7%.

While, Food prices increased by 3.6% while transport costs rose 4%.

Consumer prices increased slightly by 0.1% compared to October, Saudi Arabia’s General Authority for Statistics said.

Moreover, GaStat pointed out that restaurants and hotel prices increased by 6.9 percent year-on-year, due to the increase in catering services prices by 6.9%.

Education prices in November witnessed a rise of 3.6%, mainly due to a rise in pre-primary and primary education fees.

On Wednesday, the Saudi Central Bank has decided to raise the rate of the Repurchase Agreement (Repo) by 50 basis points (0.5%) to 5%, and the rate of the Reverse Repurchase Agreement (Reverse Repo) by 50 basis points to 4.5%.

The bank said decision is in line with the central bank’s objectives of maintaining monetary stability and supporting financial stability.

The Saudi government target an average inflation rate of 2.6% by the end of 2022.

In October, Saudi Arabia’s inflation slowed down to 3% in October, the drop in inflation rate was seen for the first time since May 2021, data released by the General Authority for Statistics.