The annual inflation rate in Saudi Arabia remained steady at 1.7 percent in September 2024 compared to September 2023 amid a 9.3 percent increase in the prices of housing, water, electricity, gas, and other fuels as well as the 0.8 percent increase in prices of food and beverages.
In its latest report, the General Authority for Statistics (GASTAT) also revealed prices of transportation decreased by 3.3 percent.
In September 2024, Saudi Arabia’s inflation rate recorded a slight increase of 0.1 percent compared to August 2024 due to a 0.6 percent rise in prices of housing, water, electricity, gas, and other fuels, and a 0.8 percent increase in actual housing rents and prices.
House rents rise 11.2 percent
Saudi Arabia’s inflation rate remained steady last month mainly due to an 11.2 percent annual increase in house rent prices and a 10 percent rise in apartment rental prices. This increase in prices of housing, water, electricity, gas, and other fuels impacted last month’s inflation rate due to the significant 25.5 percent weight it holds in calculating the annual rate.
Similarly, food and beverage prices increased by 0.8 percent year-on-year, influenced by a 5.2 percent rise in vegetable prices. Prices in the restaurants and hotels sector also rose by 1.7 percent, driven by a 1.5 percent increase in catering service prices. Meanwhile, the education sector witnessed a 1.6 percent increase due to a rise in the fees of intermediate and secondary education by 3.8 percent.
On the other hand, prices of furnishing and home equipment decreased by 3.7 percent while prices of clothing and footwear decreased by 3.2 percent. Transportation prices also decreased by 3.3 percent due to a 4.5 percent decline in vehicle purchase prices.
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Wholesale prices rise
In addition to the inflation report, GASTAT released separate wholesale price data, revealing a 3.1 percent annual increase in Saudi Arabia last month. The main driver behind the rise in wholesale prices last month was an 8 percent increase in prices of other transportable goods and a 12 percent rise in prices of basic chemicals. Prices of refined petroleum products also rose 12 percent.
On a monthly basis, wholesale prices increased by 0.3 percent, as prices of other transportable goods increased by 0.9 percent, due to a 9.6 percent increase in the price of basic chemicals.
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