The consumer price index in Saudi Arabia, or inflation, reached 1.6 percent during the month of January on an annual basis, compared to the same month in 2023 (3.4 percent). However, the index was slightly higher than December 2023 on an annual basis, when it recorded 1.5 percent.
Despite this slight increase, the Kingdom ranked second among G20 countries with the lowest inflation rates, after Switzerland, which registered 1.3 percent.
The General Authority for Statistics (GASTAT) attributed this rise to an increase in the prices of housing, water, electricity, gas and other types of fuel by 7.8 percent, and the prices of food and beverages by 1 percent.
Actual residential rents increased by 9.3 percent in January, affected by an 8.2 percent rise in villa rental prices, which had a significant impact on the increase in annual inflation in January.
The leisure and culture sector recorded an increase of 1.4 percent, affected by a 7.1 percent rise in the prices of holiday and tourism packages.
In contrast, transportation prices decreased by 1.1 percent, so did the prices of miscellaneous personal goods and services.
In January, the Consumer Price Index recorded a slight increase of 0.3 percent compared to December 2023.
Inflation in Saudi Arabia slowed in December 2023 to the lowest level in 23 months, reaching 1.5 percent on an annual basis compared to 1.7 percent in November.
The 2023 data was lower than the Ministry of Finance’s estimates, which expected the inflation rate to reach 2.6 percent last year.
The Saudi government has adopted proactive measures and policies to contain rising prices, setting a ceiling on gasoline prices and raising the level of food stocks, in addition to supporting social protection programs.
