Riyadh: The Kingdom of Saudi Arabia’s annual inflation rate reached 1.9 percent in October this year, the highest in 14 months, primarily due to increase in housing prices.
According to the General Authority for Statistics (GASTAT) report issued on Thursday, November 14, the annual increase in housing rents reached 11.6 percent, with apartment rents experiencing a 11.3 percent rise.
The increase in the housing section significantly impacted the annual inflation pace for October 2024, with a weight of 25.5 percent.
This comes at a time when housing prices in the Kingdom are escalating due to limited real estate supply, population growth, and an influx of expats seeking housing.
The expenses for housing, water, electricity, gas, and other fuels increased by 9.6 percent compared to the same period in 2023.
In October, personal goods and services prices increased by 2.3 percent, primarily due to a 24.1 percent increase in jewelry, watches, and precious antiques.
Restaurant and hotel expenses increased by 1.9 percent annually, while education costs rose by 1.1 percent. Food and beverage prices slightly increased in October, primarily due to a 2.6 percent vegetable price increase.
The prices for furnishings, home equipment, clothing, footwear, and transportation decreased by 3.1 percent annually, primarily due to a 4.2 percent decrease in vehicle purchase prices.
Saudi Arabia’s Consumer Price Index (CPI) saw a modest 0.3 percent increase compared to September.
The CPI monitors price fluctuations for a fixed basket of 490 goods and services, derived from the 2018 income and expenditure survey.
