Saudi Arabia’s inflation rate experienced a slight decline in March, easing to 1.6 percent compared to 1.8 percent in February, according to the latest report from the General Authority for Statistics (GASTAT). Saudi Arabia’s consumer price index (CPI) saw this marginal decrease primarily driven by changes in the food and beverage sector.
The report indicates that Saudi Arabia’s monthly inflation index declined due to a 0.7 percent decrease in the food and beverage sector, with meat and poultry prices experiencing a notable decline of 0.6 percent. Additionally, prices of transportation, furnishing and home equipment saw a 0.7 percent decrease. Moreover, the recreation, culture, communications, and tobacco sectors also witnessed decreases.
Meanwhile, prices rose by 0.7 percent in the housing, water, electricity, gas, and other fuel category. The personal goods and services sector also saw a 0.3 percent increase while the clothing and footwear sector saw a 0.1 percent increase. Notably, prices for education, restaurants, hotels, and health remained unchanged in March.
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Annual inflation
Annually, Saudi Arabia’s inflation increased by 1.6 percent in March 2024 compared to 2.7 percent in March 2023. This rise is due to an 8.8 percent increase in prices of housing, water, electricity, gas, and other fuels, as well as a 0.9 percent rise in food and beverage prices. However, prices of transportation saw a 1.8 percent decline and personal goods and services decreased by 1.1 percent on an annual basis.
Notably, rental prices were the main driver behind Saudi Arabia’s annual inflation increase in March 2024, with actual housing rents increasing by 10.5 percent. Prices in restaurants and hotels rose by 2.4 percent, influenced by a 2.2 percent increase in food service prices. Similarly, the recreation and culture sector recorded a 0.7 percent increase, driven by a rise in holiday and tourism prices. However, prices in the furnishing and home equipment sector decreased, as did prices in clothing and footwear.
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