SAUDI Arabia’s annual inflation eased to 1.7 per cent in October, matching the rate recorded in April and down from 1.9pc in September, according to official data, reports the Arab News.
Higher housing, transport and food costs continued to drive annual price growth, while consumer prices rose 0.1pc month on month, according to a report by the General Authority for Statistics (GASTAT).
The housing, water, electricity, gas and other fuels category recorded an annual increase of 3.5pc, with actual housing rents also rising by 3.5pc.
Insurance and financial services prices increased by 3.5pc, led by a 6.5pc rise in insurance services. Transport costs climbed 2.3pc, while food and beverages prices rose 1.1pc. Other categories recording annual increases included recreation, sport and culture, at 2.7pc, and restaurants and accommodation services, at 1.8pc. Education prices rose 1.3pc, while personal care, social protection and miscellaneous goods and services increased by 1pc.
By contrast, prices for furnishings, household equipment and routine household maintenance declined by 0.5pc, while clothing and footwear prices fell 0.2pc.
Housing and utility costs remained the largest contributor to annual price growth, followed by transport and food, according to GASTAT.
“The housing, water, electricity, gas, and other fuels division was the main contributor to the annual inflation, with a contribution of 0.7 percentage points,” the authority said.
Transport contributed 0.3 percentage points to the annual rate, while food and beverages added 0.2 percentage points.
“The personal care, social protection, and other goods and services division contributed 0.1 percentage points, while the other divisions collectively contributed 0.4 percentcage points,” GASTAT stated.
Inflationary pressures across the Gulf have intensified in recent months, driven largely by higher food and transport costs amid the regional conflict and disruptions to shipping through the Strait of Hormuz, according to a November analysis by Kamco Invest.
Dubai recorded an annual inflation rate of 5pc in September, the highest among the markets covered in the analysis, with transport costs rising 14.7pc.
Saudi Arabia recorded annual inflation of 1.9pc in September, while Kuwait’s rate stood at 2.2pc in July, supported by a 6.1pc increase in food and beverage prices. Oman’s annual inflation subsequently eased to 2.9pc in October, according to its National Centre for Statistics and Information.
Despite the upward pressure, inflation across the GCC remains relatively contained compared with the wider region, supported by energy subsidies, administered prices and currency pegs, Kamco said.
The investment firm cited International Monetary Fund projections showing average GCC inflation reaching 2.7pc in 2026 before easing to 2.4pc in 2027 and 2pc from 2028 onward.
On a monthly basis, the kingdom’s consumer price index increased by 0.1pc in October compared with September.
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