The annual inflation rate in Saudi Arabia reached 1.6% in August 2024 compared to August 2023, according to the General Authority for Statistics. This increase is driven mainly by an 8.9% rise in housing, water, electricity, gas, and other fuels, along with a 0.9% increase in food and beverage prices. Transportation costs saw a 3.4% decrease.
Rental prices drive inflation
Actual housing rents rose by 10.7%, led by a 10.8% increase in apartment rentals. This sector, making up 21% of the consumer basket, played a key role in maintaining the annual inflation rate.
Food and beverage prices increased by 0.9%, impacted by a 4.6% rise in vegetable prices. Additionally, restaurant and hotel prices rose by 1.6%, with catering services contributing to this increase. Education costs also climbed by 1.6%, with intermediate and secondary education fees rising by 3.8%.
Decline in other sectors
Furnishings and home equipment prices fell by 3.5%, driven by a 6.2% drop in furniture and flooring prices. Clothing and footwear also saw a 3.2% decrease, led by a 5.6% reduction in ready-made clothing. Transportation costs declined by 3.4%, impacted by a 4.9% drop in vehicle prices​.
