RIYADH: Saudi Arabia’s inflation rate accelerated to 2.3 percent in March, driven by higher costs for housing rents, food, and personal goods, official data showed.
The increase was notably influenced by the housing segment’s 25.5 percent weight in the Consumer Price Index.
According to the General Authority for Statistics, the rise was mainly due to a 6.9 percent increase in the housing, water, electricity, gas, and other fuels category. This was largely fueled by an 8.2 percent jump in actual housing rents, with apartment rents surging 11.9 percent.
Food and beverage prices also contributed to the annual uptick, climbing 2 percent, primarily due to a 3.8 percent increase in meat and poultry costs. Meanwhile, the personal goods and services category rose 3.9 percent, driven by a sharp 26.2 percent spike in the prices of jewelry, watches, and precious antiques.
Other contributing factors included the restaurants and hotels segment, which rose 1.3 percent, largely due to a 3.3 percent increase in hotel and furnished apartment service prices. Education costs went up by 1.1 percent, with tertiary education fees rising 4.3 percent.
In contrast, transport prices fell 0.8 percent, driven by a 1.5 percent decline in vehicle purchase costs. The furnishings and household equipment category dropped 2.6 percent, while clothing and footwear prices declined 0.8 percent, impacted by a 1.9 percent drop in ready-made clothing.
On a monthly basis, the CPI increased by 0.3 percent in March compared to February. This was attributed to a 0.5 percent rise in the housing, water, electricity, gas, and other fuels segment, driven by a 0.6 percent increase in housing rents.
The food and beverage group also edged up by 0.3 percent month on month, as vegetable prices rose 2 percent. Other notable monthly increases included personal goods and services at 0.4 percent, restaurants and hotels at 0.5 percent, and recreation and culture at 0.6 percent, as well as education at 0.7 percent, clothing and footwear at 0.3 percent, and communication at 0.1 percent.
The report also noted a 0.9 percent monthly decline in furnishings and household equipment, while prices in the transport, health, and tobacco categories showed no significant change.
Wholesale price index
In a separate report, GASTAT noted that Saudi Arabia’s Wholesale Price Index increased 1.5 percent year on year in March, driven by a 3.2 percent rise in the prices of other transportable goods and a 3.6 percent increase in agriculture and fishery products.
Food products, beverages, tobacco, and textiles edged up 0.1 percent annually, supported by a 2.1 percent rise in grain mills, starch, and other food items, as well as a 1.2 percent increase in leather and leather product prices, including footwear.
By contrast, prices for metal products, machinery, and equipment fell 0.2 percent, driven by a 3.5 percent drop in general-purpose machinery and a 5.5 percent decline in radio, television, and communication equipment costs.
Ores and minerals recorded a 1.9 percent year-on-year decrease due to falling prices for stone and sand.
On a monthly basis, the WPI rose 0.4 percent in March compared to February, led by a 0.4 percent increase in the prices of metal products, machinery, and equipment.
This was primarily driven by a 2.9 percent rise in fabricated metal products and a 0.6 percent increase in electrical machinery and apparatus.
The same rate of increase was recorded in other transportable goods, while food-related categories edged up 0.2 percent, driven mainly by a 0.5 percent rise in the prices of grain mills, starch, and other food products, along with a 0.1 percent increase in prices of meat, fish, fruits, vegetables, oils, and fats.
Agriculture and fishery product prices inched up 0.1 percent, while the ores and minerals segment remained stable with no significant change.
