Riyadh: The annual inflation rate in the Kingdom of Saudi Arabia (KSA) increased to 2 percent in November this year, up from 1.9 percent in October.
The Kingdom’s inflation rate accelerated for the fourth consecutive month, recording its highest level since July 2023.
This rate reflects a remarkable stability in prices compared to many countries, as it is considered among the lowest inflation rates in the G20.
According to the General Authority for Statistics (GASTAT) report issued on Sunday, December 15, this annual increase in inflation is mostly due to a 9.1 percent increase in the prices of housing, water, electricity, gas and other fuels, as a result of 10.8 percent increase in the group of rents paid for housing.
Affected by a 12.5 percent increase in appartmen prices, demonstrating the significant impact of this category, which accounts for 25.5 percent of the overall index.
Rental costs are rising as a result of increased housing demand, global firms establishing regional headquarters in Saudi Arabia, and a slowdown in construction activity due to decreased finance for new residential real estate.
In November, Moody’s analysis noted that Saudi Arabia’s inflation rate is expected to remain stable at 1.6 percent in 2024 and 1.9 percent in 2025, before rising slightly to 2 percent in 2026.
Wholesale Price Index in Saudi Arabia rises by 1.4 pc in Nov
In its report, GASTAT revealed a 1.4 percent year-on-year increase in Saudi Arabia’s Wholesale Price Index (WPI) for November.
The increase was primarily due to a 2.7 percent rise in other transportable goods and a 12 percent rise in refined petroleum product prices.
h Meanwhile, the prices of furniture and other transportable goods rose by 9.4 percent.
In the same context, the prices of agriculture and fishery products rose by 3.3 percent, as a result of a 5.5 percent increase in the products of agriculture.
The prices of metal products, machinery and equipment rose by 0.2 percent, as a result of a 3.5 percent increase in basic metals prices, and the prices of electrical machinery and apparatus by 2.9 percent.
On the other hand, the prices of food products, beverages, tobacco, and textiles decreased by 0.4 percent, due to a 4.7 percent decrease in the prices of meat, fish, fruits, vegetables, oils and fats, and dairy products by 1.9 percent.
Ores and minerals decreased by 3.0 percent, as a result of a 3.0 percent decrease in the prices of stones and sand.
