Saudi Arabia's inflation rate stabilizes at 1.5% in July

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RIYADH — Inflation in Saudi Arabia stabilized at 1.5 percent in July on an annual basis, remaining at its lowest level since December 2023, according to the latest data released by the General Authority for Statistics (GASTAT).

The data came despite the acceleration of the pace of increase in housing rents to the highest level since data collection began in 2013, which showed that actual housing rents rose by 11.1 percent during the past month on an annual basis, affected by a 12 percent increase in apartment rents. Housing prices recorded a 10.1 percent increase in June.

The food and beverages segment also rose by 0.4 percent, affected by a 5.3 percent increase in vegetable prices, while the restaurants and hotels section recorded a 2.3 percent increase, affected by a 7.0 percent increase in hotel services and furnished apartments prices, while the education section recorded a 1.6 percent increase, affected by a 3.8 percent increase in intermediate and secondary education fees.

In contrast, consumer prices declined for about 9 groups by rates ranging between 1.2 percent and 3.5 percent, which may have prevented an increase in inflation rates during the past month, most notably the 3.5 percent decline in the transportation section due to a 4.8 percent decrease in vehicle purchase prices.

The inflation rate in Saudi Arabia is one of the most stable, which confirms the strength and durability of the Saudi economy. It also demonstrates the effectiveness of economic plans and decisions that the Kingdom rushed to take early on to confront the wave of global inflation and high prices.

The Consumer Price Index (CPI) or inflation 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 the household income survey conducted in 2018, according to which the item’s weights were determined. The prices are collected through field visits to points of sale. The CPI statistics of the consumer price index in the Kingdom are published monthly