Housing rents and food prices push Saudi inflation to 1.6 per cent in August

WEB DESK: In August, Saudi Arabia’s annual inflation rate went up slightly to 1.6 per cent, compared to 1.5 per cent in July, according to new data released on Sunday. This increase was mainly due to higher housing rents and food prices.

Housing rents rose by 10.7 per cent in August, contributing to an overall 8.9 per cent increase in prices for housing, water, electricity, gas, and other fuels, as reported by the General Authority for Statistics.

Inflation had stayed steady at 1.5 per cent in June and July, mostly because of stable apartment rents.

In August, food and beverage prices went up by 0.9 per cent, which is a larger increase than in previous months, mainly due to a 4.6 per cent rise in vegetable prices.

Prices for restaurants and hotels, as well as the education sector, also increased. However, transport prices dropped by 3.4 per cent, and prices for furniture and home equipment fell by 3.5 per cent.

Saudi Arabia’s inflation rate remained at 1.6 per cent in May.

Compared to global levels, inflation in Saudi Arabia has stayed relatively low this year.

The International Monetary Fund’s latest report predicts that Saudi inflation will average 1.9 per cent in 2024 and 2 per cent in 2025.

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