DUBAI - Saudi Arabia's annual inflation rate edged up to 1.7% in September, from 1.6% in August, government data showed on Tuesday, with increases in housing rents the main driver once again.

Overall housing rents rose by 11.2% in September, according to the General Authority for Statistics, driving up prices for the combined Housing, Water, Electricity, Gas and Other Fuels category which jumped 9.3%.

Rental price hikes have been the key driver of inflation in Saudi Arabia for much of this year.

Food and beverage prices rose 0.8% in September, mainly due to an increase in vegetable prices by 5.2%, while prices in the restaurants and hotels category, as well as the education sector, also rose.

A decline in vehicle purchase prices supported an overall decline in transportation prices by 3.3%.

On a month-on-month basis, prices increased 0.1% in September.

Inflation has remained relatively low in Saudi Arabia this year compared with global levels.

(Reporting by Rachna Uppal; Editing by Andrew Heavens)