RIYADH: Saudi Arabia’s annual inflation rate hit 1.7 percent in September, compared to the same period last year, driven by rising housing costs, official data showed.
The report from the General Authority for Statistics highlighted a 9.3 percent increase in housing, water, electricity, gas, and other fuel prices, which significantly contributed to the inflation rise.
Housing rents saw an 11.2 percent jump, with apartment rental prices up 10 percent. This category’s weight in the overall index had a considerable impact on the inflation rate.
This comes as rising housing prices in Saudi Arabia are being fueled by a limited supply of properties, alongside a growing population and an influx of expatriates seeking accommodation in the Kingdom.
Food and beverage prices rose by 0.8 percent, driven by a 5.2 percent increase in vegetable prices. Restaurant and hotel prices climbed 1.7 percent, influenced by a 1.5 percent rise in catering services.
The education sector experienced a 1.6 percent rise, mainly due to a 3.8 percent increase in fees for intermediate and secondary education.
Conversely, furnishings and home equipment prices dropped by 3.7 percent, due to a 7 percent decrease in furniture, carpets, and flooring prices.
Clothing and footwear prices dropped by 3.2 percent, with ready-made clothing prices falling by 5.5 percent.
Transportation costs also decreased by 3.3 percent, primarily due to a 4.5 percent reduction in vehicle purchase prices. Communication services saw a slight decrease of 1.6 percent.
Monthly inflation
On a monthly basis, the consumer price index inched up 0.1 percent in September compared to August, largely driven by a 0.6 percent rise in housing-related expenses, including a 0.8 percent increase in actual housing rents.
The report also noted minor increases in food and beverages with 0.3 percent, restaurants and hotels, and personal goods and services with 0.1 percent each, compared to the previous month.
Meanwhile, there were decreases in the prices of clothing and footwear by 0.2 percent, furnishings, household equipment and maintenance by 0.3 percent, recreation and culture by 0.3 percent, communications by 0.1 percent, and tobacco by 0.1 percent.
The prices of education and transportation products remained stable.
Wholesale price index
In a separate report, GASTAT revealed the Wholesale Price Index rose 3.1 percent in September compared to the same month last year, driven by an 8 percent increase in transportable goods, including a 12 percent rise in basic chemical prices and refined petroleum products.
Food products, beverages, tobacco, and textiles dropped 0.3 percent, while ores and minerals fell 3.6 percent, influenced by a decline in stone and sand prices.
On a monthly basis, the WPI edged up 0.3 percent in September, with transportable goods rising 0.9 percent due to a 9.6 percent increase in basic chemical prices.
The prices of ores and minerals decreased by 0.2 percent, due to a 0.2 percent drop in the prices of stone and sand.
Metal products, machinery and equipment decreased by 0.1 percent, while fish and other fishing products decreased by 2.7 percent, driven by a 0.1 percent dip in the agriculture and fishing products.
Goods and services
Another GASTAT bulletin showed notable shifts in the average prices of goods and services across Saudi Arabia in September.
The data, which tracks price movements on a monthly basis, highlighted both increases and decreases in various categories, reflecting dynamic market conditions.
Philippines Banana, Alsharbatli saw the highest increase at 15.8 percent, followed by local lettuce at 9.5 percent, local zucchini at 9.5 percent, Abu Sorra Egyptian orange at 8.6 percent, and Pakistani mandarin at 8.4 percent. Prices of coal and African teak wood increased by 1.7 percent each.
Conversely, several items experienced significant price drops during the same period. Lebanese peach saw the highest drop at 7.4 percent, followed by Indian pomegranates at 6 percent, hotel accommodation at 5.3 percent, local glass cheese at 5 percent, and dates at 4.8 percent.
Chinese iron-binding cables decreased by 3.1 percent, black national cement by 2.4 percent, 15 cm black block and Romanian wood by 1.2 percent each.
