Prime Highlights:
- Saudi Arabia’s annual inflation edged up to 2.1% in December, driven mainly by higher housing and food costs.
- Consumer and wholesale prices remain stable and in line with global trends, reflecting a well-managed economy.
Key Facts:
- Housing, water, electricity, gas, and other fuels rose 4.1% year-on-year, with rental prices up 5.3%.
- Wholesale prices increased 3.1% over the year, supported by higher transportable goods and agricultural product costs.
Background:
Saudi Arabia’s annual inflation rate edged up to 2.1 percent in December, compared to 1.9 percent in November, largely driven by rising housing rents, according to the latest data released by the General Authority for Statistics (GASTAT).
The rise was mainly due to higher housing costs, with prices for housing and utilities up 4.1 percent over the year. Actual rental prices recorded a notable 5.3 percent increase, making housing the biggest contributor to overall inflation during the month.
GASTAT said the Consumer Price Index (CPI) increase was also supported by higher costs in other key categories. Food and beverage prices rose 1.3 percent annually, while transport costs increased by 1.5 percent compared to the same period last year.
Spending on personal care and other services rose 7 percent over the year due to higher demand. Insurance and financial service prices rose 4.1 percent, driven by a 6.6 percent increase in insurance costs.
Prices for entertainment, sports, and cultural activities went up 2.4 percent year on year, driven largely by higher prices for holiday packages. Education costs increased 1.5 percent, while prices at restaurants and hotels rose 0.9 percent over the year.
Education and tobacco prices remained unchanged during the month.
GASTAT said Saudi Arabia’s Wholesale Price Index rose 3.1 percent over the year in December, mainly due to higher prices for transportable goods and agricultural products. On a monthly basis, wholesale prices increased 1 percent. Despite the increase, inflation remains stable and in line with global trends.
