Inflation in Saudi Arabia has fallen once again and now stands at 1.5 per cent.
The Consumer Price Index (CPI) stood at 1.5 per cent in December 2023, lower than 1.7 per cent in November, indicating a relative slight decrease on an annual basis.
This reflects the strength of the Saudi economy and the effectiveness of the economic measures the Kingdom has adopted to deal with the global rise in inflation rates.
Saudi inflation falls
The CPI is based on a fixed basket of 490 goods and services, and reflects changes in consumer prices.
Data for the index is collected by visiting retail outlets to gather relevant price information.
Actual rents for housing increased by 9 per cent in December 2023, reflecting the increase in rents for apartments of 12.1 per cent.
Prices for rents were the main driver of the inflation rate in December 2023 due to their high relative importance in the Saudi consumer basket (with a weight of 21.0 per cent).
Food and beverages prices increased by 1.2 per cent, due to the increase in milk products and eggs by 4.1 per cent.
Restaurants and hotels prices increased by 2.5 per cent, due to an increase in catering services prices.
Recreation and culture prices increased by 1 per cent, due to an increase in package holidays prices by 7.1%.
Education prices increased by 0.8 per cent, mainly resulting from the increase in secondary education prices by 3.1 per cent.
In contrast, furnishings, household equipment and maintenance prices decreased by 3.2 per cent, due to the decrease in furniture, carpets and other floor coverings 4.9 per cent.
Clothing and footwear prices decreased by 4.2 per cent, due to the decrease in garments prices.
Transport prices decreased by 1.3 per cent, due to the decrease in purchase of motor cars.
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