SAUDI Arabia’s annual inflation rate edged up to 1.8 per cent in March compared to the same month in the previous year, as housing rents continue to drive price gains, official data showed, reports the Arab News.
The latest report from the General Authority for Statistics (GASTAT) stated: “This increase was mainly driven by a rise in housing, water, electricity, gas, and other fuel prices by 3.9pc, transport prices by 0.9pc and prices of restaurant and accommodation services by 2.2pc.”
The figures showed that actual rents increased by 4.8pc, underscoring continuous demand for residential properties in the kingdom.
Saudi Arabia’s inflation outlook aligns with International Monetary Fund projections made in October, which see inflation at about 2pc in 2026, broadly in line with the UAE, while Qatar is expected to record a slightly higher rate of 2.6pc.
According to GASTAT, prices of personal care, social protection, and miscellaneous goods and services increased by 8.2pc year on year in March, driven by a 27.3pc rise in the prices of other personal products.
Prices for restaurants and accommodation services rose by 2.2pc, while costs of insurance and financial services increased by 2.1pc.
Food and beverage prices, an important factor for households in the Kingdom, recorded only a modest 0.3pc year on year increase in March.
Conversely, the prices of furnishings, household equipment, and routine household maintenance decreased by 0.5pc, affected by a decline in the prices of furniture, furnishings, and loose carpets by 2.3pc.
The costs of clothing and footwear also decreased by 0.1pc due to the decline in the prices of the clothing group by 0.2pc.
On a monthly basis, Saudi Arabia’s CPI increased by 0.3pc in March compared to the previous month, driven by a 0.5pc rise in food and beverages and a 0.7pc increase in the costs of personal care and miscellaneous goods.
The prices of the housing, water, electricity, gas and other fuels increased by 0.2pc, while expenses for restaurants and accommodation services division witnessed a 0.6pc increase.
Transport prices dipped by 0.2pc in March compared to the previous month, while the prices of education, health, and tobacco services remained stable.
In a separate report, GASTAT said Saudi Arabia’s Wholesale Price Index recorded a year-on-year increase of 3.3pc in March.
The rise was driven mainly by a 6.4pc increase in prices of other transportable goods, excluding metal products, machinery, and equipment.
“The prices of metal products, machinery, and equipment rose by 1.2pc driven by a 6.6pc rise in the prices of basic metals and a 0.8pc increase in the prices of transport equipment,” said GASTAT.
It added: “The prices of agriculture and fishery products increased by 1.8pc as a result of the increase in the prices of products of agriculture by 1.7pc and the prices of live animals and animal products by 2.7pc.”
Conversely, the costs of ores and minerals decreased by 0.2pc due to a 0.2pc decline in the prices of stones and sand.
GASTAT added that the prices of food products, beverages, tobacco, and textiles remained stable, with no significant relative change during March.
On a monthly basis, the WPI increased 0.2pc in March, driven by a 0.3pc rise in prices of metal products, machinery and equipment.
The prices of other transportable goods, excluding metal products, machinery, and equipment, also increased by 0.4pc compared to the previous month.
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