Saudi Arabia recorded an annual inflation rate of 1.7% in September 2024, compared to the same month in 2023. The rise was primarily driven by a 9.3% increase in the prices of housing, water, electricity, gas and other fuels, alongside a 0.8% rise in food and beverage prices.
Rental prices were the key contributor to inflation, with housing rents rising by 11.2%, including a 10% increase in apartment rental prices. This sector, which makes up 25.5% of the Consumer Price Index (CPI) basket, significantly impacted the overall inflation rate.
Food and beverage prices saw an uptick of 0.8%, influenced by a 5.2% rise in vegetable prices. The restaurants and hotels sector also saw a 1.7% increase, driven by a 1.5% rise in catering service prices. Education costs grew by 1.6%, mainly due to a 3.8% rise in intermediate and secondary education fees.
Meanwhile, several sectors saw price declines. Transportation prices fell by 3.3% due to a 4.5% decrease in vehicle purchase prices. Furnishing and home equipment prices dropped by 3.7%, influenced by a 7% reduction in furniture, carpets and flooring prices. Clothing and footwear prices also declined by 3.2%, driven by a 5.5% drop in ready-made clothing prices.
In terms of month-on-month changes, the CPI rose by 0.1% from August 2024. Housing, water, electricity, gas and other fuels saw a monthly increase of 0.6%, driven by an 0.8% rise in actual housing rents. Food and beverage prices increased by 0.3%, led by a 1.6% rise in vegetable prices. However, transportation prices fell by 0.4%, and other sectors, such as recreation, furnishing, and clothing, also saw minor declines.
