According to official figures, the rise in housing costs was the main reason behind Saudi Arabia’s annual inflation rate, which in July increased to 1.5% from the same period the previous year.

The General Authority for Statistics’ data indicates that the main driver of the inflation rate was the 9.3 percent increase in the cost of housing, water, electricity, gas, and other fuels.

Maintaining the overall inflation level was largely dependent on this category, which accounts for a sizable component of the consumer price index.

In July, food and beverage prices had a little increase of 0.4 percent year over year, according to the authority, despite a 3.5 percent decrease in transportation expenses over the same time frame.

This is happening against the backdrop of Saudi Arabia’s robust economy, which, as the Council of Economic and Development Affairs acknowledged at a May meeting, has managed to maintain an average annual inflation rate of 1.6 percent despite global economic concerns.

Due in large part to the government’s proactive attempts to stabilize the economy and lessen the impact of swings in global prices, the Kingdom continues to have one of the lowest rates of inflation in the area.

According to the GASTAT study, the increase in apartment rental rates by 12 percent was the primary cause of the 11.1 percent year-over-year increase in housing costs, specifically actual rents, in July.

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