Saudi Arabia’s inflation holds steady at 1.6% in May: GASTAT

Saudi Arabia’s inflation rate rose marginally by 0.2 percent in May compared to the previous month, driven by changes in housing prices, official data showed.

According to the report by the General Authority for Statistics, expenses for housing, water, electricity, gas, and other fuels increased by 0.4 percent month-on-month in May.

The monthly inflation index was also impacted by expenses for food and beverages, which went up by 0.7 percent in May compared to April.

Additionally, expenses for restaurants and hotels edged up by 0.2 percent, while costs for personal goods and services increased by 0.1 percent month-on-month in May.

On the other hand, prices for clothing and footwear dipped by 0.6 percent in May compared to the previous month, while costs for transportation edged down by 0.4 percent.

The report further pointed out that prices of education, furnishing and home equipment, and tobacco products did not show any significant change in May compared to April.

Annual inflation rises

On a yearly basis, Saudi Arabia’s Consumer Price Index increased by 1.6 percent in May compared to the same period last year.

GASTAT attributed this rise to a 10.5 percent increase in actual housing rents, influenced by a 14.3 percent increase in apartment rents.

“This increase had a significant impact on maintaining the annual inflation rate for May 2024, due to the substantial weight of this category at 21 percent,” said the authority in the report.

Similarly, costs of food and beverages increased by 1.4 percent, driven by a 6.9 percent rise in vegetable prices.

On the other hand, prices of furnishing and home equipment decreased by 3.8 percent.

Similarly, expenses for clothing and footwear decreased by 4 percent year-on-year in May, while transport costs also decreased by 2.4 percent during the same period.

Wholesale price index increases

In another report, GASTAT revealed that Saudi Arabia’s Wholesale Price Index increased by 3.2 percent in May compared to the same month of the previous year.

This increase is mainly driven by a 14.5 percent rise in prices of basic chemicals and a 12 percent increase in the costs of refined petroleum products, the authority added.

Similarly, prices of food products, beverages, tobacco, and textiles rose by 1.8 percent year-on-year in May, due to a 7.4 percent increase in the prices of leather, leather products, and footwear.

Compared to April, the Kingdom’s WPI decreased by 0.1 percent in May, driven by a 0.3 percent drop in the prices of food products, beverages, tobacco, and textiles.