Inflation in Saudi Arabia increased to 1.6% in January.

• The rate of inflation in the Kingdom of Saudi Arabia increased to 1.6% in January up from 1.5% in December.
• Rent was the biggest factor in the increases, having a total of 21% of this period’s inflation weight.
• The kingdom saw price decreases as well which include clothing, footwear, transporting, furnishing and house equipment.
• The rise of the wholesale price index was caused by basic chemicals which saw price increases that went up to 34%
• The Main Driver of CPI inflation was an increase in housing, water, electricity and fuel prices, with prices seeing a 7.8% increase.

The Kingdom of Saudi Arabia has seen inflation increase from 1.5% in December 2023 to 1.6% in January 2024.

Price Increase:

The General Authority for Statistics (GASTAT) announced in a report that the monthly consumer price index was influenced by a 1.1% increase in prices for housing, water, electricity, gas and fuel.

The increase was mainly due to the uptick in housing and rent prices, where the market saw a 1.2% increase.

The price of refined petroleum products increased by 12% compared to last year.

This rise in the wholesale price index was driven by basic chemical prices which went up by 34%

Food and beverage prices increased by 0.3% while restaurant prices increased by 0.2% while prices for personal goods decreased by 0.5% in January compared to December.

Additionally, compared to January of 2023, housing, water, electricity, gas and other fuel prices increased by 7.8% last month.

Price decline:

The Price of furnishings, maintenance and household equipment decreased by 3.3%.

The price of clothing and footwear dropped by 4.1%.

Transport and delivery fees decreased by 1.1%.

Quotes:

Announced in the GASTAT report, “Prices for rents were the main driver of the inflation rate in January 2024 due to their high relative importance in the Saudi consumer basket with a weight of 21%”