RIYADH, Aug 15 (Arab News): The Kingdom Saudi Arabia's (KSA) annual inflation rate climbed to 1.5 per cent in July compared to the same period last year, driven largely by a surge in housing costs, official data showed.
According to data from the General Authority for Statistics, the 9.3 per cent increase in the prices of housing, water, electricity, gas, and other fuels was the primary contributor to the inflation rate.
This category, which represents a significant portion of the consumer price index, played a crucial role in maintaining the overall inflation level.
The authority further noted that food and beverage prices also saw a modest rise of 0.4 per cent year on year in July, while transportation costs declined by 3.5 per cent during the same period.
This comes against the backdrop of Saudi Arabia's resilient economy, which maintained an average annual inflation rate of 1.6 per cent despite global economic challenges, as noted during a May meeting of the Council of Economic and Development Affairs.
The Kingdom's inflation rate continues to be one of the lowest in the region, reflecting the government's proactive efforts to stabilise the economy and mitigate the impact of global price fluctuations. The GASTAT report further noted that housing costs, particularly actual rents, surged by 11.1 per cent year on year in July, driven by a 12 per cent increase in apartment rental prices.
"The increase in this (housing) category had a significant impact on maintaining the annual inflation rate for July 2024, given the weight this group represents at 21 per cent," said GASTAT in the report.
Additionally, the cost of dining out and hotel stays rose by 2.3 per cent year on year, fueled by a 7 per cent increase in accommodation service prices, the authority said.
According to the authority, prices for furnishings and home equipment fell by 3.4 per cent in July, with furniture, carpets, and flooring costs decreasing by 5.6 per cent.
Clothing and footwear expenses dropped by 3 per cent, with ready-made clothing prices declining by 5.5 per cent.
Monthly inflation GASTAT noted a 0.1 per cent increase in inflation from June to July. This monthly rise was driven by a 0.1 per cent increase in housing, water, electricity, gas, and other fuels, with a 1.2 per cent rise in actual housing rents.
Compared to June, prices for restaurants and hotels rose by 0.2 per cent, and costs for furnishings, household equipment, and maintenance increased by 0.1 per cent in July. Expenses for education and tobacco also went up by 0.2 per cent and 0.1 per cent, respectively.
