Saudi Inflation Eases as Prices Remain Stable
Moderate inflationary pressure observed in September; housing costs continue to rise.
Riyadh: Saudi Arabia's consumer price index (CPI) dipped by 0.1 percent in September compared to the previous month, indicating continued economic stability with moderate inflationary pressure.
The decline was primarily driven by lower transport costs and decreases in restaurant, accommodation services, furnishings, and communication prices according to the General Authority for Statistics (GASTAT).The Kingdom's annual inflation rate remained at 2.2 percent in September, mainly influenced by rising housing and water costs.
This aligns with the International Monetary Fund's (IMF) latest World Economic Outlook report, which projects an annual inflation rate of 2.1 percent in 2025 and 2 percent in 2026 for Saudi Arabia.GASTAT reported that on a monthly basis, the CPI decreased by 0.1 percent in September compared to August.
The transport division saw a decline of 0.4 percent due to a 1.4 percent decrease in passenger transport, while restaurant and accommodation services dropped by 0.9 percent.
Prices in the furniture and home appliances, periodic home maintenance, entertainment and culture divisions, clothing and footwear, insurance and financial services, information and communications, and health divisions all declined by 0.3 percent.However, housing, water, electricity, gas and other fuels prices rose by 0.4 percent, food and beverages by 0.1 percent, personal goods and services by 0.4 percent, education by 0.3 percent, and tobacco products by 0.1 percent compared to the previous month.Housing costs had a significant impact on the inflation rate due to their substantial weight in the overall index.
In March, Crown Prince Mohammed bin Salman ordered measures to stabilize Riyadh's real estate market amid rising costs, leading to new rent-freeze regulation for residential and commercial properties within the city effective September 25.Food prices saw an increase of 1.1 percent influenced by a 0.6 percent rise in meat prices, while restaurants and hotels experienced a 1.5 percent increase driven by accommodation services.
Personal care, social protection, and other goods and services division rose by 5.4 percent due to a 16.3 percent increase in 'other personal effects'.
Transport division prices increased by 1.6 percent and insurance and financial services by 7.7 percent, while furnishing and home equipment decreased by 0.6 percent and information and communication division by 0.4 percent.In another report, GASTAT stated that the Wholesale Price Index (WPI) rose by 2.1 percent in September compared to the same month of the previous year due to a 4 percent increase in transportable goods and 4.7 percent rise in agriculture and fishery products.
The WPI increased by 0.3 percent on a monthly basis in September, with metal products and machinery rising by 0.7 percent driven by basic chemicals and furniture and other transportable products.The report also revealed notable shifts in the average prices of goods and services across Saudi Arabia for September.
Local tomatoes saw the highest month-on-month increase at 27.1 percent, followed by green beans at 17.8 percent, local zucchini at 16.2 percent, local okra at 15.1 percent, and green local peppers at 12.4 percent.Conversely, several items experienced significant price drops during the same period, including furnished apartments with a decrease of 9.2 percent, Indian pomegranates with 7.5 percent, and hotel accommodation with 5.8 percent.
The decline was primarily driven by lower transport costs and decreases in restaurant, accommodation services, furnishings, and communication prices according to the General Authority for Statistics (GASTAT).The Kingdom's annual inflation rate remained at 2.2 percent in September, mainly influenced by rising housing and water costs.
This aligns with the International Monetary Fund's (IMF) latest World Economic Outlook report, which projects an annual inflation rate of 2.1 percent in 2025 and 2 percent in 2026 for Saudi Arabia.GASTAT reported that on a monthly basis, the CPI decreased by 0.1 percent in September compared to August.
The transport division saw a decline of 0.4 percent due to a 1.4 percent decrease in passenger transport, while restaurant and accommodation services dropped by 0.9 percent.
Prices in the furniture and home appliances, periodic home maintenance, entertainment and culture divisions, clothing and footwear, insurance and financial services, information and communications, and health divisions all declined by 0.3 percent.However, housing, water, electricity, gas and other fuels prices rose by 0.4 percent, food and beverages by 0.1 percent, personal goods and services by 0.4 percent, education by 0.3 percent, and tobacco products by 0.1 percent compared to the previous month.Housing costs had a significant impact on the inflation rate due to their substantial weight in the overall index.
In March, Crown Prince Mohammed bin Salman ordered measures to stabilize Riyadh's real estate market amid rising costs, leading to new rent-freeze regulation for residential and commercial properties within the city effective September 25.Food prices saw an increase of 1.1 percent influenced by a 0.6 percent rise in meat prices, while restaurants and hotels experienced a 1.5 percent increase driven by accommodation services.
Personal care, social protection, and other goods and services division rose by 5.4 percent due to a 16.3 percent increase in 'other personal effects'.
Transport division prices increased by 1.6 percent and insurance and financial services by 7.7 percent, while furnishing and home equipment decreased by 0.6 percent and information and communication division by 0.4 percent.In another report, GASTAT stated that the Wholesale Price Index (WPI) rose by 2.1 percent in September compared to the same month of the previous year due to a 4 percent increase in transportable goods and 4.7 percent rise in agriculture and fishery products.
The WPI increased by 0.3 percent on a monthly basis in September, with metal products and machinery rising by 0.7 percent driven by basic chemicals and furniture and other transportable products.The report also revealed notable shifts in the average prices of goods and services across Saudi Arabia for September.
Local tomatoes saw the highest month-on-month increase at 27.1 percent, followed by green beans at 17.8 percent, local zucchini at 16.2 percent, local okra at 15.1 percent, and green local peppers at 12.4 percent.Conversely, several items experienced significant price drops during the same period, including furnished apartments with a decrease of 9.2 percent, Indian pomegranates with 7.5 percent, and hotel accommodation with 5.8 percent.
