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Inflation in Saudi Arabia at its Lowest in Nearly 2 Years

Saudi Arabia recorded a slight increase in its inflation in November, reaching 1.7 percent on an annual basis. (SPA)
Saudi Arabia recorded a slight increase in its inflation in November, reaching 1.7 percent on an annual basis. (SPA)
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Inflation in Saudi Arabia at its Lowest in Nearly 2 Years

Saudi Arabia recorded a slight increase in its inflation in November, reaching 1.7 percent on an annual basis. (SPA)
Saudi Arabia recorded a slight increase in its inflation in November, reaching 1.7 percent on an annual basis. (SPA)

Saudi Arabia recorded a slight increase in its inflation in November, which reached 1.7 percent on an annual basis. However, this rate remains near the lowest level in two years.

The rate of 1.6 percent, recorded last month, was the same recorded in February 2022, according to the latest statistical figures released by the General Authority for Statistics (GASTAT). This rate is also inferior to the global inflation target of 2 percent and among the lowest among the G20 countries.

The rise in inflation in November was the result of rising prices for housing, water, electricity, gas, some other types of fuel, and food and beverages.

In its monthly bulletin, GASTAT said actual housing rents rose by 9.4 percent in November, and apartment rental prices increased by 12.8 percent.

The report indicated that the prices of food and beverages rose by 1.4 percent due to the increase in the prices of milk, dairy products, and eggs, while the prices of clothing and shoes decreased by 4.1 percent, affected by the fall in the prices of ready-made clothing. On a monthly basis, inflation reached 0.2 percent in November compared to its level in the previous month.

In remarks to Asharq Al-Awsat, experts said the low inflation rate gives the Kingdom flexibility in using an expansionary economic policy that supports sustainable development.

Economist Ahmed Al-Jubeir said Saudi Arabia has taken proactive steps to mitigate the severity of price increases in light of the wave of inflation that has swept the world.

He stressed that the government set a higher ceiling for fuel prices in addition to allocating financial support in a total amount of SAR 20 billion ($5.3 billion) to confront the repercussions of rising global prices.

Expert in international economics Ali Mohammad Al-Hazmi told Asharq Al-Awsat that the announced inflation rate was positive compared to other international economies.

He added that the rate gives Saudi Arabia greater flexibility in using an expansionary economic policy that supports comprehensive sustainable development and allows for more international financing.

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Fire, Smoke Upend Western Canada’s Summer Tourism Season

A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
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Fire, Smoke Upend Western Canada’s Summer Tourism Season

A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)

Severe wildfire seasons are increasingly hurting western Canada's lucrative tourism industry, with some visitors beginning to avoid the busy late-summer months due to concerns about uncontrolled blazes, smoke-filled skies and road closures.

After a scorching start to July, nearly 600 wildfires are now ablaze across British Columbia and Alberta, including a huge fire that this week devastated the picturesque tourist town of Jasper in the Canadian Rockies.

Dozens of communities, including popular holiday spots in British Columbia's Kootenay region, are under evacuation orders and several highways are closed.

This year's surge in wildfire activity comes after Canada endured its worst-ever year for wildfires in 2023, when more than 15 million hectares (37 million acres) burned, including parts of the city of West Kelowna in the heart of British Columbia's wine region.

Ellen Walker-Matthews, head of the Thompson Okanagan Tourism Association, said the industry was seeing a lot more last-minute travel decisions instead of booking in advance.

"It's a huge blow. July and August are traditionally the busiest months in the region," said Walker-Matthews, adding that while her region has been relatively unscathed by wildfires this summer, some visitors are choosing to avoid interior British Columbia altogether.

The members of the British Columbia Lodging and Campgrounds Association are reporting a 5-15% drop in bookings from a year ago, with the biggest declines coming from the hotter Okanagan and Cariboo regions, said Joss Penny, who heads the association.

"The concern is that this is something we have to live with and we have it every year now," said Penny.

Although wildfires in Canada's forests are natural and common, scientists say drier, hotter conditions fueled by climate change are leading to more volatile and frequent blazes.

'SMOKEY SKIES'

Some events, like the Salmon Arm Roots and Blues Festival, usually held in August, have now been rescheduled to earlier in the summer to avoid what is now seen as peak smoke season. The festival, which was cancelled last year due to nearby wildfires, was this year moved to July to benefit from "less smokey skies."

Wildfires and extreme climatic events are prompting tourists to "change their plans not just temporarily, but permanently," said Elizabeth Halpenny, a tourism researcher and professor at the University of Alberta, noting that seasonal workers in the sector are often the hardest hit as they have few protections during a bad season or amid a cataclysmic fire.

Tourism contributed C$7.2 billion to the British Columbia economy in 2022, and C$9.9 billion to Alberta in 2023, according to the latest government data.

Jasper National Park is one of Canada's premier tourist destinations, with more than 2 million visitors a year flocking to see its pristine mountain landscapes and abundant wildlife, including grizzly bears, moose and elk.

Kelly Torrens, vice-president of product at international tour company Kensington Tours, described western Canada as a bucket-list destination. But the company now has 49 trips that were supposed to pass through Jasper this season in limbo. Six others were forced to evacuate the park when the fire hit.

Parks Canada has cancelled all camping reservations within Jasper National Park until Aug. 6 and with potentially 50% of the town's structures destroyed by fire, the cleanup and rebuild could take years.

Halpenny is among those hedging their bets.

"I've booked a campsite stay in the mountain parks but at the same time, I booked a campsite out on the prairie somewhere and that's my backup plan because I don't want to miss out on my vacation with my family."