Saudi Arabia’s inflation rate hits 1.6pc in August

RIYADH, Sept 15 (Arab News): Saudi Arabia's annual inflation rate reached 1.6 per cent 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 per cent year on year in August, with apartment rents rising by 10.8 per cent.
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 per cent," said GASTAT.
The latest report showed that food and beverage prices in the Kingdom saw a slight increase of 0.9 per cent in August, while restaurant and hotel expenses rose by 1.6 per cent during the same period.
In the education sector, costs increased by 1.6 per cent in August, driven by a 3.8 per cent rise in fees for intermediate and secondary education.
Prices for furnishing and home equipment dropped by 3.5 per cent, driven by a 6.2 per cent decline in the costs of furniture, carpets, and flooring.
Clothing and footwear prices fell by 3.2 per cent, and transportation expenses decreased by 3.4 per cent compared to August last year.
On a month-to-month basis, Saudi Arabia's consumer price index edged up by 0.1 per cent in August.
The report said that the monthly inflation was influenced by a 0.4 per cent rise in housing, water, electricity, gas, and other fuel costs.