The inflation rate in Saudi Arabia stood at 1.5% in December 2023, a decrease from the 1.7% rate recorded by the Consumer Price Index (CPI) in November of the same year.
The new data indicates a relatively slight decrease in inflation rates on an annual basis. In 2023, inflation rates averaged 2.3%, lower than government estimates of 2.6%.
The easing of inflation rates has been explained as a result of increased prices for housing and utilities, which rose by 7.9% throughout the year, while the prices of food and beverages increased by 1.4%.
In December, the data published by the General Authority for Statistics showed that rents for housing increased by 9% in December, pushing an overall rise in the pricing of housing, water, electricity, gas, and other fuels by 7.5%.
Prices for food and beverages rose by 1.2% in December, and by 2.5% for restaurants and hotels, while prices for clothing, furnishings, household products, and transport decreased.
Overall, inflation remained relatively low in Saudi Arabia last year, compared to global levels, with government policies limiting the impact of international price increases.
The CPI is based on a fixed basket of 490 goods and services and reflects changes in consumer prices.
