RIYADH: Saudi Arabia’s inflation rate softened to 3 percent in February 2023, against 3.4 percent recorded in January, driven by a slight decrease in food and beverage prices, according to the latest report released by the General Authority for Statistics.

The inflation rate stood at 3.3 percent and 2.9 percent in December and November, respectively.

The monthly consumer price index was affected by a 0.7 percent decrease in food prices, according to the date, which also revealed that transport prices fell by 0.5 percent in February against the previous month.

This was mainly due to the decrease in motor car prices by 0.9 percent.

There was also a fall of 0.5 percent in furnishings, household equipment and maintenance prices.  

However, on a year-on-year basis, inflation continues to rise in line with the global trend as the Kingdom’s inflation had been 1.6 percent in February 2022.  

GASTAT noted the rise in Saudi Arabia’s consumer price index in February was primarily driven by higher prices of housing, water, electricity, gas, and other fuels which went up by 7 percent year-on-year. 

Prices of food and beverages went up by 3.1 percent in February compared to the same month last year.

The report noted that housing, water, electricity, gas, and other fuel prices were increased due to the rise in actual rentals for housing by 8.3 percent, which in turn was affected by the increase in apartment rental prices by 21.4 percent. 

Meanwhile, Saudi Arabia’s wholesale price index rose 2.7 percent year-on-year in February 2023, primarily driven by higher prices of food products, beverages, tobacco, and textiles. 

The GASTAT report also revealed the prices of food products, beverages, tobacco, and textiles increased by 6.3 percent year-on-year in February, while prices of dairy products surged by 19.5 percent. 

The Kingdom’s WPI, however, softened by 0.1 percent in February 2023 compared to January 2023 as a result of the decrease in the prices of other transportable goods by 0.6 percent, the report added. 

Compared to January, ores and minerals prices also decreased by 0.7 percent in February, due to the decrease in stones and sand prices. 

Contrarily, metal products, machinery and equipment prices increased by 0.5 percent month-on-month in February due to the increase in the prices of basic metals. 

“The prices of agriculture, fishery products, food products, beverages, tobacco, and textiles stabilized and did not show any significant change in February 2023,” said GASTAT in the report.