Saudi Arabia’s Consumer Price Index (CPI) increased to 2% in November, the highest level in 15 months, according to the General Authority for Statistics (GASTAT). This marks a slight rise from October’s inflation rate of 1.9%. Despite the increase, Saudi Arabia continues to have the lowest inflation rate among G20 nations.
The primary driver of the inflation rise was a 9.1% increase in the housing, water, electricity, gas, and other fuels category, influenced by a 10.8% rise in rents paid for housing. Apartment rents alone surged by 12.5%, contributing significantly to the CPI increase, as this category represents 25.5% of the index weight.
The personal goods and services category also rose by 2.7%, driven by a 23.7% increase in prices of jewellery, watches, and precious antiques. Restaurants and hotel prices increased by 1.5% due to a 5.9% rise in hotel services and furnished apartment costs. Education costs went up by 1.1%, primarily from a 1.8% rise in intermediate and secondary school fees.
Food and beverage prices saw a modest 0.3% increase, with meat and poultry prices rising by 1.9%. However, declines were recorded in other categories. Home furnishing and equipment prices fell by 2.9%, led by a 4.4% decrease in furniture, carpets, and floor coverings. Clothing and footwear prices dropped by 2.3%, influenced by a 4.6% reduction in ready-made clothing costs. Transportation prices decreased by 2.5%, reflecting a 3.9% decline in vehicle purchase prices.
The CPI tracks changes in prices for a fixed basket of goods and services comprising 490 items. The basket was developed based on the 2018 household expenditure and income survey, with prices collected via on-site visits to sales points.
