Saudi Arabia's Inflation Rises to 1.6% in August

Saudi Arabia's annual inflation rate drifted up to 1.6% in August from 1.5% in July, driven primarily by rising housing rents and food prices, according to government data released on Sunday.

Housing rents saw a rise of 10.7% in August, contributing to an overall increase in prices for housing, water, electricity, gas and other fuels, which rose by 8.9%, as reported by the General Authority for Statistics. The inflation rate had remained steady at 1.5% in June and July, largely supported by apartment rents.

Food and beverage prices also saw an increase of 0.9% in August, compared to recent months, with vegetable prices surging by 4.6%. Additionally, prices in the restaurants and hotels category and the education sector rose, while transport costs fell by 3.4% and furnishing and home equipment prices decreased by 3.5%. On a month-to-month basis, prices edged up by 0.1% in August.

Despite these changes, inflation in Saudi Arabia remains relatively low compared to global levels. The International Monetary Fund projects that Saudi inflation will average 1.9% in 2024 and 2% in 2025, reflecting a stable economic outlook amid global inflationary pressures.