According to official data, Saudi Arabia experienced an inflation rate of 1.8 percent in February, showing a slight increase from the previous month’s rate of 1.6 percent.
The General Authority for Statistics (GASTAT) reported that the consumer price index for February was primarily influenced by the prices of housing, water, electricity, gas, and other fuels, which saw a 1.2 percent increase compared to the previous month. This upward trend was primarily driven by a 1.4 percent rise in actual rents for housing.
Read more: Saudi inflation climbs to 3.1 percent in September
#GASTAT publishes the Consumer Price Index, February 2024.
— الهيئة العامة للإØصاء (@Stats_Saudi) March 14, 2024
Housing rents accounted for 21 percent of the index
GASTAT noted that the inflation rate in February 2024 was mainly attributed to the high relative importance of housing rents in the Saudi consumer basket, accounting for 21 percent of the index.
In February, expenses for food and beverages decreased by 0.4 percent compared to the previous month, while transport prices dipped by 0.3 percent. Recreation and cultural prices saw a 0.2 percent increase, followed by a 0.1 percent increase in costs for personal goods and services.
On the other hand, prices for education, restaurants, hotels, and health services did not show any significant change in February compared to January.
Compared to February 2023, housing, water, electricity, gas, and other fuel prices increased by 8.5 percent last month, while rates for food and beverages rose by 1.3 percent. Similarly, restaurant and hotel prices surged by 2.5 percent, primarily driven by a 2.2 percent increase in expenses for catering services.
GASTAT revealed that costs for education went up by 1.2 percent in February, mainly due to a 4.3 percent increase in secondary education prices.
In contrast, household equipment and maintenance prices decreased by 3 percent in February compared to the same month of the previous year. Additionally, clothing and footwear prices declined by 4 percent in February compared to the year-ago period, while transport rates dipped by 0.9 percent.
Wholesale Price Index
In another report, GASTAT stated that Saudi Arabia’s Wholesale Price Index (WPI) increased by 3.1 percent in February compared to the same period in 2023. This rise in the WPI was driven by price increases in refined petroleum products (12 percent) and basic chemicals (10.8 percent).
Similarly, the Kingdom’s WPI decreased by 1.2 percent in February compared to the previous month, primarily due to a fall in the prices of other transportable goods, which declined by 3.2 percent.
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