RIYADH: Saudi Arabia’s annual inflation rate reached 2.2 percent in October, driven primarily by rising housing and water costs, according to the latest data.

The report from Saudi Arabia’s General Authority for Statistics highlighted that a 4.5 percent increase in the prices of housing, water, and electricity, as well as gas, and other fuels significantly contributed to the inflation rate in October.

Rents paid for housing saw an increase of 5.7 percent, with actual rents paid by tenants for primary residences rising by 5.7 percent. This category’s substantial weight in the overall index had a considerable impact on the inflation rate.

Food and beverage costs also saw an increase of 1.5 percent, influenced by a 2.5 percent rise in meat prices. The prices of restaurants and hotels rose by 1.1 percent, driven by a 1.4 percent increase in the prices of food and beverages.

“Prices in the personal care, social protection, and other goods and services division increased by 5.9 percent, driven by a 19.9 percent rise in the prices of other personal effects; affected by the increase in the prices of jewelry and watches by 22 percent,” the report added.

The transport division prices rose by 1.6 percent, influenced by a 7.1 percent increase in passenger transport prices and the prices of the insurance and financial services division also increased by 8.2 percent, driven by a 13.2 percent rise in the prices of the insurance group.

Decreases in other sectors

Conversely, the prices of furnishing and home equipment decreased by 0.5 percent, driven by a 4.3 percent decline in furniture, carpets, and flooring prices. 

Similarly, the information and communication division prices recorded a decrease of 0.2 percent, due to a 6.3 percent decline in the prices of information and communication equipment.

Monthly inflation

On a monthly basis, the consumer price index recorded a slight increase of 0.3 percent in October compared to September. 

This was influenced by a rise in prices of food and beverages by 0.5 percent month on month, due to a 0.6 percent hike in meat prices.

Moreover, the prices of housing and water, as well as electricity and gas increased by 0.3 percent. Prices of personal care, social protection and other goods and services increased by 1.7 percent.

Numerous sectors didn’t record any changes in October including transportation, restaurants and accommodation services, as well as entertainment and insurance services.