Saudi inflation remains steady at 1.5% in July

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Saudi Arabia’s inflation rate held steady 1.5% in July, according to recent data from the General Authority for Statistics (GASTAT).

The consumer price index (CPI) increase was primarily driven by a 9.3% year-on-year (YoY) rise in housing, water, electricity, gas, and other fuel prices, according to Al Rajhi Capital Research.

The Wholesale Price Index (WPI) rose by 3.1% in July 2024 compared to the same month in 2023. Furthermore, Saudi crude oil production (mbpd) rose to 9.00 in July.

Consumer Price Index (CPI): CPI increased by 1.50% y-o-y in July (+1.50% y-o-y in June). The y-o-y rise of the CPI resulted mainly from Housing, Water, Electricity, and Gas (+9.26% y-o-y).

Wholesale Price Index (WPI): WPI increased by 3.06% y-o-y in July (3.21% y-o-y in June), Due to a rise in Other transportable goods (8.27%).

Index of Industrial Production (IIP): IIP decreased (-3.95% y-o-y) in June, mainly due to a decline in the Mining and quarrying sectors’ activity (-11.31% y-o-y).

International trade: Non-oil exports in June increased by 7.30% y-o-y, compared to the increase of 9.87% y-o-y in May. The shipment increase was driven by ‘Transportation equipment and parts’ (+132.88% y-o-y).

Saudi Central Bank’s foreign reserves: On an annual basis, rose 6.06% in July compared to the increase in June, to SR1.7 trillion ($450 billion).