Saudi Arabia: Inflation eases further in Sept to 1.7%, marks drop from Aug

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In September, the Consumer Price Index (CPI) increased by 1.7 per cent compared to September last year. However inflation reduced 2 per cent compared to August, according to figures released by Saudi Arabia’s General Authority of Statistics.

The main driver of CPI inflation in September was higher prices of housing, water, electricity, gas, and other fuels (8.1 per cent) and prices of restaurants and hotels (2.5 per cent).

Inflation was driven by…

Actual rents for housing increased by 9.8 per cent in September, reflecting the increase in rents for apartments by 19.8 per cent.

Prices for rents were the main driver of the inflation rate in the month due to their high relative importance in the Saudi consumer basket (with a weight of 21.0 per cent).

Restaurants and hotels prices increased by 2.5 per cent, due to the increase in catering services prices (2.1 per cent).

Education prices increased by 1.8 per cent, mainly resulting from the increase in tertiary education prices by 5.5 per cent.

Recreation and culture prices increased by 1.2 per cent, due to the increase in package holidays prices by 6.7 per cent. In contrast, furnishings, household equipment and maintenance prices decreased by 2.8 per cent, due to the decrease in furniture, carpets and other floor coverings (-3.6 per cent).

Clothing and footwear prices decreased by 3.6 per cent, due to the decrease in garments prices (-5.3 per cent), Food and beverages prices decreased by 0.2 per cent, due to the
decrease in vegetables prices (6.3 per cent), according to the government body.

Prices remained stable

Compared to August, consumer prices stayed stable in September (0.01 per cent increase).

According to the update, the monthly CPI was affected by the increase in housing, water, electricity, gas, and other fuels prices by 0.3 per cent, as a result of the increase in actual rents for housing by 0.3 per cent.

Food and beverages prices increased by 0.4 per cent and tobacco prices increased by 0.1 per cent.

However, prices of transport reduced by 0.5 per cent, furnishings and household equipment decreased by 0.1 per cent, clothing and footwear decreased by -0.2per cent, personal goods and services decreased by – 0.3 per cent, restaurants and hotels decreased by -0.1 per cent, communications decreased by -0.1 per cent, and recreation and culture decreased by -0.4 per cent.

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