Saudi Arabia's inflation rate hits 1.6% in August: GASTAT

14/09/2024 12:40 AST

Saudi Arabia's annual inflation rate reached 1.6 percent in August compared to the same month last year, driven by higher housing costs, official data showed.

According to the General Authority for Statistics, actual housing rents surged by 10.7 percent year on year in August, with apartment rents rising by 10.8 percent.

Saudi Arabia's inflation rate remains among the lowest in the Middle East and North Africa, reflecting the Kingdom's proactive measures to stabilize the economy and mitigate the effects of global price pressures.

"The increase in this category (housing) had a significant impact on maintaining the annual inflation rate for August 2024, given the weight this group represents 21 percent," said GASTAT.

The report showed that food and beverage prices in the Kingdom saw a slight increase of 0.9 percent in August, while restaurant and hotel expenses rose by 1.6 percent during the same period.

In the education sector, costs increased by 1.6 percent in August, driven by a 3.8 percent rise in fees for intermediate and secondary education.

Prices for furnishing and home equipment dropped by 3.5 percent, driven by a 6.2 percent decline in the costs of furniture, carpets, and flooring.

Additionally, clothing and footwear prices fell by 3.2 percent, and transportation expenses decreased by 3.4 percent compared to August 2023.

On a month-to-month basis, Saudi Arabia's consumer price index edged up by 0.1 percent in August.

The report highlighted that the monthly inflation was influenced by a 0.4 percent rise in housing, water, electricity, gas, and other fuel costs.

GASTAT also noted a 0.4 percent month-on-month increase in food and beverage prices, while restaurant and hotel expenses grew by 0.2 percent.

Prices for education, personal goods and services, health, communications, and tobacco remained relatively stable compared to July.

Arab News