Saudi Arabia’s inflation rate remained stable at 1.6 percent in January, compared to 1.5 percent in December 2023, according to official data from the General Authority for Statistics (GASTAT). The latest report provides valuable insights into the factors influencing consumer prices, including notable increases in housing costs and fluctuations in various expenditure categories.
Consumer price trends
The monthly consumer price index was primarily influenced by a 1.1 percent increase in prices for housing, water, electricity, gas, and other fuels. This uptick was due to a 1.2 percent increase in actual rents for housing, reflecting the sector’s significant impact on Saudi Arabia’s overall inflation rate.
Similarly, food and beverage prices rose by 0.3 percent. Meanwhile, restaurant prices increased by 0.2 percent.
The GASTAT report highlights that rent increases played a pivotal role in driving Saudi Arabia’s inflation rates in January 2024. Hence, rent holds a substantial weight of 21 percent in the Saudi consumer basket.
Conversely, prices for personal goods and services decreased by 0.5 percent. Meanwhile, transport expenses, clothing and footwear prices also experienced declines. In addition, healthcare expenses and tobacco prices declined by 0.6 percent and 0.7 percent, respectively, compared to December 2023.
Year-on-year fluctuations
Comparing January 2024 to the year-ago period, the report observes a notable 7.8 percent increase in housing, water, electricity, gas, and other fuels prices, which played a major role in influencing Saudi Arabia’s inflation rate. Food and beverage prices also witnessed a 1 percent year-on-year increase. Meanwhile, expenses for restaurants and hotels edged up by 2.4 percent. However, prices for furnishings, household equipment, and maintenance decreased by 3.3 percent year-on-year.
Read: Saudi Arabia achieves $16 billion budget surplus in Q4 2023
Wholesale price index
In a separate report, GASTAT highlighted a 4.3 percent increase in Saudi Arabia’s wholesale price index in January 2024 compared to the same month in 2023. This rise was primarily due to a significant increase in basic chemical prices, which surged by 34 percent.
Additionally, expenses for refined petroleum products increased by 12 percent compared to the previous year contributing to the minor uptick in Saudi Arabia’s inflation rates.
Saudi Arabia’s wholesale price index rose by 2 percent in January 2024 compared to December 2023, with a notable 5.0 percent increase in the prices of other transportable goods driving this uptick. These fluctuations underscore the dynamic nature of wholesale prices and their impact on overall economic trends.
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