S. Arabia’s annual inflation 1.9% up in Dec ’24 

Saudi Arabia’s annual inflation rate reached 1.9 per cent in December 2024, driven by higher housing, water, electricity, gas, and fuel costs, which surged 8.9 per cent.

Food and beverage prices rose by 0.8 per cent, while personal goods and services climbed 2.2 per cent. In contrast, transport prices dropped by 2.5 per cent.

Rental prices were the main inflation driver, with housing rents rising 10.6 per cent, largely due to a 9.9 per cent hike in villa rental rates. This category, representing 25.5 per cent of the inflation basket, significantly influenced the overall rate.

Meat and poultry prices increased by 2.9 per cent, contributing to the rise in food costs. Personal goods and services also saw a notable jump, with jewellery and luxury item prices up 20.2 per cent.

Meanwhile, prices in the transport sector fell by 3.9 per cent, driven by declining vehicle purchase costs. Clothing and footwear prices dropped 2.2 per cent, and furnishing and home equipment prices declined 2.8 per cent.

Monthly consumer price trends

On a monthly basis, Saudi Arabia’s consumer prices remained relatively stable in December 2024 compared to November. Housing rents increased by 0.6 per cent, contributing to a 0.5 per cent rise in the housing, water, electricity, gas, and fuel sector.

Food prices edged up by 0.1 per cent, driven by a 0.5 per cent increase in meat and poultry prices. However, transportat prices fell by 0.3 per cent, influenced by a decline in vehicle purchase costs, while furnishings, household equipment, and maintenance dropped by 0.4 per cent due to a 0.5 per cent decrease in furniture and flooring prices.

Prices for restaurants and hotels declined by 0.2 per cent, and recreation and culture prices fell by 0.6 per cent, reflecting lower leisure activity costs. Communication prices also dipped by 0.1 per cent. Meanwhile, health, education, and tobacco prices showed no significant changes during this period.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser

Leave a comment