RIYADH: According to the General Authority for Statistics’ most recent figures, Saudi Arabia’s annual inflation rate increased marginally from 2.2 percent in May to 2.3 percent in June. Even while other consumer categories saw varied price movements, the cost of living continued to grow due to rising housing rentals, which was the main driver of the price increase.
With annual increases of 6.5 percent, housing and energy expenses continued to be the most significant contributors to inflation. A 7.6 percent increase in actual home rentals was primarily responsible for this spike, with villa rental costs alone up 7.1 percent from June of the previous year.
With the housing component accounting for a substantial 25.5 percent of the consumer price index basket, its ongoing increase has had a disproportionate effect on inflation as a whole.
The Kingdom’s inflation rate is close to the regional average when compared to its neighbours in the Gulf Cooperation Council. Similar housing-related pressures were seen in the UAE, where annual inflation in recent months hovered at 2.3 percent.
A 2.4 percent increase in the price of meat and poultry drove a 1.5 percent yearly gain in the Saudi food and beverage industry. A 26.5 percent increase in jewellery, watches, and antiques was a major factor in the 4.1 percent increase in the cost of personal goods and services.
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