RENT increases and fuel price rises across April saw Saudi Arabia post an annual inflation rate of 2.3 per cent for the second month in a row, official data showed, reports Arab News.
According to the latest figures from the General Authority for Statistics, a 6.8pc increase in the cost of housing, water, electricity, gas, and other fuels contributed to the rise.
Within this category, rents paid for housing rose by 8.1pc, driven by an 11.9pc spike in apartment rental prices, a category that holds significant weight in the overall index.
This comes as Saudi Arabia’s real estate market continued its growth trajectory in the first quarter of 2025, with overall property prices rising 4.3pc year on year.
The kingdom’s inflation rate was similar to Middle Eastern neighbour Jordan, which posted a modest increase of 1.97pc in the first four months of 2025, but significantly lower than the 13.5pc registered in April by Egypt.
In its release, GASTAT stated that rental growth “had a substantial effect on the overall annual inflation rate for April 2025 due to the section’s weight, which amounted to 25.5pc.”
The release showed that food and beverage prices also saw an increase of 2.2pc, influenced by a 9.4pc rise in vegetable prices. The prices of restaurants and hotels rose by 2pc, driven by a 2pc increase in catering services.
The education sector witnessed a 1.3pc increase, mainly due to a 5.6pc rise in fees for intermediate and secondary education. The prices of furnishing and home equipment, however, decreased by 1.8pc, driven by a 3.5pc decline in furniture, carpets, and flooring prices.
Clothing and footwear prices dropped by 1.2pc, with ready-made clothing prices falling by 2.1pc.
Transportation costs also decreased by 1pc, primarily due to a 1.8pc reduction in vehicle purchase prices. Communication services saw a slight decrease of 1.5pc.
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