In July, the inflation rate in Saudi Arabia remained stable at 1.5 percent on an annual basis, which is the lowest level since December 2023. This data was released by the General Authority for Statistics (GASTAT). Despite this stability, the housing rents saw an increase, with actual housing rents rising by 11.1 percent on an annual basis. This increase was mainly driven by a 12 percent rise in apartment rents. Additionally, housing prices recorded a 10.1 percent increase in June. The food and beverages segment also rose by 0.4 percent, mainly due to a 5.3 percent increase in vegetable prices.
The restaurants and hotels sector recorded a 2.3 percent increase, influenced by a 7.0 percent rise in hotel services and furnished apartments prices. The education section saw a 1.6 percent increase, driven by a 3.8 percent increase in intermediate and secondary education fees. On the other hand, consumer prices declined for approximately 9 groups by rates ranging between 1.2 percent and 3.5 percent. This decline may have prevented an increase in inflation rates during this past month, with the most notable decrease being the 3.5 percent decline in the transportation section due to a 4.8 percent decrease in vehicle purchase prices.
The stability of the inflation rate in Saudi Arabia highlights the strength and longevity of the Saudi economy. It also showcases the effectiveness of economic plans and decisions made by the Kingdom early on to combat the wave of global inflation and high prices. The Consumer Price Index (CPI) reflects the changes in prices paid by consumers for a fixed basket of goods and services consisting of 490 items. This basket was selected based on a household income survey conducted in 2018, which determined the weights of the items. Prices are collected through field visits to points of sale, and the CPI statistics are published monthly.
