S. Arabia’s annual inflation reaches 1.5% in July

Saudi Arabia’s inflation rate reached 1.5 per cent annually in July 2024 compared to 2.3 per cent in the same period in 2023, with a monthly increase of 0.1 per cent from June.

This annual rate was largely driven by a 9.3 per cent rise in the prices of housing, water, electricity, gas, and other fuels. Within this category, actual housing rents saw an 11.1 per cent increase, heavily influenced by a 12.0 per cent rise in apartment rental prices. Moreover, this category alone, given its substantial weight in the overall consumer price index (21.0 per cent), had a major impact on maintaining the inflation rate at its current level.

Food and beverage prices also contributed to the inflationary pressure, with a modest increase of 0.4 per cent, driven by a 5.3 per cent rise in vegetable prices. Additionally, the prices of restaurants and hotels increased by 2.3 per cent, influenced by a 7.0 per cent rise in accommodation services prices.

Moreover, the education sector saw a 1.6 per cent rise, mainly due to a 3.8 per cent increase in fees for intermediate and secondary education.

On the other hand, the prices of furnishings and household equipment decreased by 3.4 per cent, with furniture, carpets, and flooring seeing a 5.6 per cent decline. Similarly, clothing and footwear prices dropped by 3.0 per cent, led by a 5.5 per cent fall in ready-made clothing prices. Transportation prices also declined by 3.5 per cent, driven by a 4.8 per cent decrease in vehicle purchase prices.