1.7%.. Decrease in the inflation rate in Saudi Arabia in September

The inflation rate in Saudi Arabia decreased to 1.7% in September, compared to 2% in August, due to price stability in all sectors, according to official data.

The latest data issued by the General Authority for Statistics revealed that this rate is the lowest since February 2022, when it reached 1.6 percent.

transportation fees

Transportation costs decreased by 0.5% during the month of September compared to August, while the prices of household furnishings and equipment decreased by 0.1% during the same period.

Housing prices rose

In contrast, the prices of housing, water, electricity, gas and other fuels rose by 0.3 percent in September compared to the previous month. Food and beverage prices also rose by 0.4 percent month-on-month in September, while expenditures on tobacco products rose by 0.1 percent.

Contain the inflation rate

Saudi Arabia has succeeded in containing the inflation rate, unlike many other countries that are grappling with rising prices on the global stage.

But in September 2023, the inflation rate in Saudi Arabia rose by 1.7 percent compared to the same month of the previous year, driven by higher prices for housing, water, electricity, gas, and other fuels, which rose by 8.1 percent.

Actual housing rents rise

The General Authority for Statistics revealed that actual housing rents increased by 9.8 percent in September of this year compared to the same month in 2022.

The General Authority for Statistics said: “Rent prices were the main driver of the inflation rate in September 2023, due to their high relative importance in the Saudi consumer basket, with a weight of 21 percent.”

Restaurant and hotel expenses rose

According to the report, restaurant and hotel expenses rose 2.5 percent year-on-year in September, while catering service prices rose 2.1 percent.

Education expenses rose

The report added that education expenditures rose by 1.8%, mainly due to a 5.5% increase in higher education prices.

On the positive side, prices for furnishings, home equipment and maintenance fell by 2.8 percent in September year-on-year, driven by a 3.6 percent decline in prices for furniture, carpets and other floor coverings.

In another report, the General Authority for Statistics revealed that the wholesale price index in the Kingdom of Saudi Arabia increased by 0.5 percent in September compared to the same month in 2022.

The General Authority for Statistics attributed the rise in the wholesale price index to the rise in prices of dairy products, which rose by 15.3 percent during the month of September.

The report added that the Kingdom's wholesale price index rose by 0.4 percent in September 2023 compared to August 2023, driven by an increase in the prices of other transportable goods, which rose by 1 percent.