RIYADH: Saudi Arabia’s annual inflation rate remained stable at 2 percent in November compared to the same month in 2023, driven primarily by higher housing costs, official data showed.  

According to data released by the General Authority for Statistics, housing rents increased by 10.8 percent year on year in November, while apartment rental prices surged 12.5 percent during the same period.  

Overall, costs for housing, water, electricity, gas, and other fuels rose by 9.1 percent compared to the previous year, underscoring the sector’s influence on inflation. 

Saudi Arabia’s inflation rate remains among the lowest in the Middle East and globally, highlighting the Kingdom’s effective measures to maintain economic stability and address global price pressures. 

A World Bank report released in October projected that Saudi Arabia’s inflation will remain steady at 2.1 percent in 2024 and 2.3 percent in 2025, well below the Gulf Cooperation Council average. 

“The increase in this section (housing) had a significant impact on the continuation of the annual inflation pace for November 2024 due to the weight formed by this section, which amounted to 25.5 percent,” GASTAT stated. 

The cost of personal goods and services rose by 2.7 percent year on year, driven by a 23.7 percent increase in the prices of jewelry, watches, and antiques. Restaurant and hotel expenses edged up by 1.5 percent, while the education sector saw a 2.7 percent annual increase. 

Food and beverage prices recorded a marginal rise of 0.3 percent year on year, supported by a 1.9 percent increase in meat and poultry costs. 

However, some sectors saw declines. Furnishing and home equipment prices dropped 2.9 percent year on year, with furniture, carpets, and flooring costs falling by 4.4 percent. Clothing and footwear prices decreased by 2.3 percent, while transportation costs slipped by 2.5 percent. 

On a monthly basis, the consumer price index rose slightly by 0.3 percent from October.  

“This monthly inflation index was influenced by a 0.9 percent rise in the section of housing, water, electricity, gas, and other fuels, which in turn, was affected by a 1 percent increase in actual housing rents and prices,” said GASTAT.  

The authority noted that personal goods and services prices rose by 0.5 percent month on month in November, driven by a 6.5 percent increase in insurance expenses. 

Food and beverage prices recorded a slight monthly rise of 0.2 percent, while recreation and culture costs edged up by 0.1 percent. On the other hand, expenses for clothing and footwear dropped 0.3 percent in November compared to October. 

Prices for furnishing and home equipment and communication services also declined slightly, down by 0.3 percent and 0.1 percent, respectively. Transportation and education costs showed no significant changes during the same period. 

Last month, Moody’s projected that Saudi Arabia’s inflation would remain under control, at 1.6 percent in 2024 and 1.9 percent in 2025, before slightly accelerating to 2 percent by 2026. 

Wholesale Price Index 

In a separate report, GASTAT revealed a 1.4 percent year-on-year increase in Saudi Arabia’s Wholesale Price Index for November. The rise was largely driven by a 2.7 percent increase in other transportable goods, including a 12 percent jump in refined petroleum product prices. 

Agriculture and fishery product prices rose by 3.3 percent, while metal products, machinery, and equipment saw a modest 0.2 percent increase. Conversely, food products, beverages, and textiles declined by 0.4 percent, weighed down by a 4.7 percent drop in costs for meat, fish, and dairy products. 

The report indicated that prices of ores and minerals dropped 3 percent year on year in November, driven by a similar decline in the costs of stones and sand. 

On a monthly basis, Saudi Arabia’s WPI rose by 0.2 percent in November, supported by a 1.8 percent increase in agriculture and fishery product prices. 

Food products, beverages, tobacco, and textiles saw a marginal 0.2 percent monthly rise, while expenses for transportable goods increased by 0.3 percent during the same period. 

Conversely, costs for metal products, machinery, and equipment dipped 0.2 percent, and prices of ores and minerals remained largely unchanged from October. 

Average Price Index 

In another report, GASTAT highlighted significant shifts in the average prices of goods and services across Saudi Arabia in November. 

The price of Lebanese peaches surged 27.03 percent compared to October, while local onion prices rose 17.86 percent. Green local peppers and white cabbage also saw significant increases, climbing 15.83 percent and 10.95 percent, respectively.  

Local grapes recorded a 10.46 percent rise, and the cost of Pakistani mandarins increased by 7.47 percent month on month. 

Conversely, the price of local zucchini dropped by 14.30 percent in November. Medium Africa lemon and local cucumbers also saw declines of 11.45 percent and 8.67 percent, respectively. 

In non-food goods, prices of Chilean wood decreased by 2.79 percent, while Romanian wood costs fell by 0.86 percent compared to the previous month.