RIYADH: According to official figures, rising housing costs were the main cause of Saudi Arabia’s annual inflation rate, which reached 1.7 percent in September compared to the same period last year. According to the General Authority for Statistics report, the cost of housing, water, electricity, gas and other fuels increased by 9.3%, which was a major factor in the increase in inflation. Apartment rental costs increased by 10%, while housing rents increased by 11.2%. The inflation rate was significantly impacted by this category’s weight in the overall index.
This occurs at a time when a shortage of available real estate, a growing population, and an influx of foreigners looking for residence in the Kingdom are all contributing factors to rising housing costs in Saudi Arabia. Vegetable costs increased by 5.2 percent, which drove a 0.8 percent increase in food and beverage prices. A 1.5 percent increase in catering services contributed to a 1.7 percent increase in restaurant and hotel rates.
The primary cause of the 1.6 percent increase in the education sector was the 3.8 percent increase in intermediate and secondary school fees. On the other hand, the cost of furniture, carpets, and flooring decreased by 7%, resulting in a 3.7 percent decline in the cost of furnishings and household equipment. The cost of apparel and footwear decreased by 3.2 percent, while the cost of ready-made apparel decreased by 5.5 percent. Due mostly to a 4.5 percent drop in the cost of buying a car, transport expenses also dropped by 3.3 percent. There was a minor decline of 1.6 percent in communication services.
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