In September 2024, Saudi Arabia’s Consumer Price Index (CPI) remained stable at 1.7 percent compared to the previous year, according to the General Authority for Statistics (GASTAT). This steady inflation rate highlights the country’s economic resilience and effective management of global inflation and price rises. Rental prices were the main driver of inflation, with housing, water, electricity, gas, and other fuels prices increasing by 9.3 percent, while food and beverage prices rose by 0.8 percent. On the other hand, transportation prices decreased by 3.3 percent.
The rise in housing, water, electricity, gas, and other fuels prices was mainly due to a significant increase in apartment rental prices by 10 percent. This increase had a notable impact on the overall annual inflation rate for September 2024, as this section holds a weight of 25.5 percent in the CPI. Additionally, food and beverage prices increased by 0.8 percent, driven by a 5.2 percent rise in vegetable prices, while prices in restaurants and hotels sector increased by 1.7 percent.
In contrast, prices of furnishing and home equipment decreased by 3.7 percent, influenced by a decline in furniture, carpets, and flooring prices. Clothing and footwear prices also saw a decrease of 3.2 percent, with ready-made clothing prices falling by 5.5 percent. Transportation prices decreased by 3.3 percent, driven by a 4.5 percent decrease in vehicle purchase prices. Despite these fluctuations, the overall inflation rate remained stable throughout the year.
In September 2024, the consumer price index recorded a slight increase of 0.1 percent compared to August 2024. This was influenced by a 0.6 percent rise in housing, water, electricity, gas, and other fuels, with actual housing rents and prices increasing by 0.8 percent. Food and beverage prices also saw a 0.3 percent increase, driven by a 1.6 percent rise in vegetable prices. However, transportation prices decreased by 0.4 percent, along with recreation and culture by 0.3 percent, and furnishing and home equipment by 0.3 percent.
According to GASTAT, CPI measures the price of a fixed basket of 490 goods and services based on a 2018 household income and expenditure survey. Prices are collected through on-site visits to sales points. This data helps to provide insight into consumer spending patterns and trends, as well as to monitor inflation rates and economic stability. Overall, Saudi Arabia’s stable inflation rate in September 2024 reflects sound economic strategies and effective decision-making in managing price fluctuations.
