RIYADH, Jan 15 (Arab News): Saudi Arabia's inflation slowed to 1.5 per cent in December 2023, compared to 1.7 per cent in the previous month, official data showed.
According to the latest report from the General Authority for Statistics, the decline in the rate on a month-on-month basis was driven by a 0.3 per cent decrease in the prices of food and beverages.
Compared to November, prices of transport decreased by 0.4 per cent in December, while expenses for clothing and footwear dipped by 0.3 per cent.
On the other hand, prices of education and tobacco showed no significant change in the final month of 2023 compared to November.
In December, prices of housing, water, electricity, gas, and other fuels went up by 0.7 per cent, while expenses for restaurants and hotels also increased by 0.4 per cent.
According to GASTAT, rents were the main driver of annual inflation in December as they surged by 9 per cent.
This had an impact on the headline figure, given their high relative importance in the Saudi consumer basket with a weight of 21 per cent.
Compared to December 2022, food and beverage prices increased by 1.2 per cent, while expenses for restaurants and hotels surged by 2.5 per cent.
Similarly, prices for recreation and culture rose by 1 per cent in December 2023 compared to the same month in the previous year.
In contrast, expenses for furnishings, household equipment, and maintenance decreased by 3.2 per cent year-on-year during the same period.
Meanwhile, in another report, GASTAT noted that Saudi Arabia's Wholesale Price Index rose by 3 per cent in the final month of 2023 compared to the year-ago period.
The increase in the WPI in December was primarily driven by higher prices of basic chemicals and dairy products, which went up by 30.9 per cent and 41.3 per cent, respectively.
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