Sat. Jul 13th, 2024

The General Authority for Statistics (GASTAT) has released its latest report, indicating that Saudi Arabia’s consumer price index, a measure of inflation, remained nearly unchanged at 1.6 percent in January. This figure reflects a marginal uptick of 0.1 percent from December 2023.

Compared to January 2023, prices in key sectors such as housing, water, electricity, gas, and other fuels experienced a notable increase of 7.8 percent. Residential rents, particularly villa rentals, surged by 9.3 percent, while food and beverage prices saw a 1 percent rise year-on-year. However, the prices for furnishings, household equipment, and maintenance exhibited a decline of 3.3 percent during the same period.

In January, the consumer price index saw a slight increment of 0.3 percent in food and beverage prices and a 0.2 percent increase in restaurant prices compared to December 2023. Conversely, transportation costs decreased by 1.1 percent, while clothing, footwear, and miscellaneous personal goods and services witnessed modest declines.

Throughout 2023, the average inflation rate stood at 2.3 percent, slightly lower than the 2.5 percent recorded in 2022, as per GASTAT’s findings. Notably, this figure diverged from the Ministry of Finance’s projections, which anticipated a 2.6 percent inflation rate for the same period. Looking ahead, the ministry forecasts a gradual decrease in inflation rates to 2.2 percent in 2024, followed by a further decline to 2.1 percent in 2025, and reaching 1.9 percent by 2026.

To address inflationary pressures, the Saudi government has implemented proactive measures and policies, including setting price ceilings on gasoline and bolstering food reserves, alongside supporting social protection programs. These initiatives aim to mitigate the impact of rising prices and ensure economic stability within the Kingdom.

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