The inflation rate in Saudi Arabia recorded 1.7% in September on a year-on-year basis, rising from 1.6% in July, with housing rents once again acting as the main driver.
According to data from the General Authority for Statistics (GASTAT) released on Tuesday, housing rents overall increased by 11.2% in September, with apartment rental prices rising by 10%. This contributed to the overall increase in the housing, water, electricity, gas, and other fuel categories, which collectively jumped by 9.3%.
Rising rental prices have been the main driver of inflation in Saudi Arabia for most of this year. This comes as housing prices in the Kingdom are being fueled by limited property supply, alongside population growth and the influx of expatriates seeking housing in the Kingdom.
Food and beverage prices rose by 0.8%, while the restaurant and hotel sector increased by 1.7%, driven by a 1.5% rise in catering services. The education sector also saw a 1.6% increase, primarily due to a 3.8% rise in middle and secondary school tuition fees.
On the other hand, transport prices fell by 3.3%, benefiting from a 4.5% drop in vehicle purchase costs. Home furnishings and equipment prices decreased by 3.7%, influenced by a 7% decline in the prices of furniture and carpets, and a 3.2% drop in clothing and footwear.
On a monthly basis, inflation rose by 0.1%, driven by a 0.6% increase in housing, water, electricity, gas, and other fuel prices. Food and beverage prices increased by 0.3% compared to August, while transport prices fell by 0.4%.
