Friday May 24th, 2024
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Saudi Inflation Drops to 1.6% After Food Price Decline

The latest report from the GASTAT reveals price drops across multiple sectors, while housing and fuel prices increase.

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Saudi Inflation Drops to 1.6% After Food Price Decline

The latest report from the General Authority for Statistics (GASTAT) shows that Saudi Arabia’s inflation has eased from 1.8% to 1.6%. This change is largely attributed to a 0.7% decrease in the Saudi food and beverage sector. In the last month, prices for meat and poultry products dropped by 0.6%, which played a role in the overall decline in inflation.

In addition to lower food prices, the Kingdom saw a 0.7% drop in costs across the furniture, transportation, and home equipment sectors, as well as a 0.9% decrease in prices associated with recreation and culture, a 0.3% decrease in prices within the communication sector, and a 0.1% decrease in tobacco product prices.

On the other hand, the personal goods and services sector saw a 0.3% increase in prices, while the clothing and footwear sector’s costs rose by 0.1% over the past month. Most notably, prices for housing, water, electricity, and fuel rose by 0.7% – these sectors have experienced an 8.8% price increase in the last year, which has been a main contributor to Saudi Arabia’s inflation rate.

That said, it should be noted that Saudi Arabia’s inflation rate is relatively low, particularly when compared with the global headline inflation, or the median inflation trend across the world. According to the IMF’s most recent World Economic Outlook report, which was released this January, global headline inflation is expected to fall to 5.8% by the end of 2024.

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