Inflation in Saudi Arabia remained stable at 1.5% in July, according to data from the General Authority for Statistics (GASTAT). This rate marks the lowest level since December 2023.
Despite the stable inflation rate, housing rents surged to their highest levels since 2013. Actual housing rents rose by 11.1% in July, driven by a 12% increase in apartment rents. In June, housing prices had already seen a 10.1% rise.
Food and Beverage Prices Increase
The food and beverages segment also saw a 0.4% increase. This was largely due to a 5.3% rise in vegetable prices. The restaurants and hotels sector recorded a 2.3% increase, influenced by a 7% hike in hotel and furnished apartment prices. Meanwhile, the education sector saw a 1.6% increase, with intermediate and secondary education fees rising by 3.8%.
Declines in Other Sectors
In contrast, consumer prices declined across nine groups, with decreases ranging from 1.2% to 3.5%. The most notable drop was in the transportation sector, which saw a 3.5% decline due to a 4.8% reduction in vehicle purchase prices.
Economic Stability in Saudi Arabia
Saudi Arabia’s inflation rate is among the most stable globally, reflecting the strength of the Kingdom’s economy. This stability highlights the effectiveness of economic measures taken early on to combat global inflation and rising prices.
Understanding the Consumer Price Index
The Consumer Price Index (CPI) reflects changes in prices paid by consumers for a fixed basket of 490 goods and services. This basket was selected based on a 2018 household income survey, which determined the weight of each item. Prices are collected through field visits to points of sale, and GASTAT publishes the CPI statistics monthly.
