RIYADH: Consumer prices in Saudi Arabia increased by 1.7 percent in 2024, driven primarily by higher housing costs, data from the General Authority for Statistics revealed. 

House rents surged by 10.6 percent year on year, significantly contributing to the overall inflationary pressure. The broader category of housing, water, electricity, gas, and other fuels saw a collective price increase of 8.8 percent, further intensifying the cost of living for households.

Despite the uptick, Saudi Arabia’s inflation rate remained among the lowest in both the Middle East and globally. This reflects the Kingdom’s ongoing efforts to ensure economic resilience and mitigate the impacts of global price pressures.

The actual inflation rate for 2024 was lower than projections made by the World Bank in October, which had forecasted a 2.1 percent increase for the year and a slight rise to 2.3 percent in 2025. Both figures were below the Gulf Cooperation Council average.

GASTAT’s latest report also detailed several other shifts in consumer prices. Food and beverage prices saw a moderate 0.8 percent increase, while restaurant and hotel costs rose by 2 percent. Educational expenses rose by 1.3 percent, further reflecting price trends across various sectors.

Meanwhile, several categories experienced price declines. Clothing and footwear prices fell by 3.4 percent, driven by a 5.8 percent drop in ready-made clothing. Similarly, the cost of furnishings and household equipment decreased by 3.4 percent, and transport costs fell by 2.4 percent.

The entertainment and culture sector also saw a price reduction of 1.3 percent, largely due to a 5.9 percent decrease in audiovisual equipment prices, underscoring the nuanced shifts in consumer price indices across different areas

In a separate report, GASTAT confirmed that Saudi Arabia’s inflation rate remained stable at 1.9 percent in December 2024, compared to the same month in 2023.

House rents continued to exert significant pressure, increasing by 10.6 percent year on year in December. Villa rents rose by 9.9 percent during the same period, further underscoring the housing sector’s impact on inflation. According to GASTAT, the housing sector accounted for 25.5 percent of the inflationary weight in December, highlighting its dominant role in shaping overall price trends.

The broader housing, water, electricity, gas, and other fuels category saw an 8.9 percent year-on-year increase in December, reinforcing the sector’s central role in driving inflation.

Food and beverage prices rose 0.8 percent, with meat and poultry prices seeing a notable 2.8 percent increase. Personal goods and services expenses grew by 2.2 percent, driven by a 20.2 percent surge in prices for jewelry, watches, and precious antiques. Education costs also increased by 1.1 percent, primarily due to a 1.8 percent rise in intermediate and secondary education fees.

On the other hand, prices for furnishings and home equipment fell by 2.8 percent, while clothing and footwear costs declined by 2.2 percent. Transportation expenses decreased by 2.5 percent, primarily due to a 3.9 percent reduction in vehicle purchase prices.