1.7% inflation rate in Saudi Arabia during the past year

The average annual consumer price inflation in the Kingdom of Saudi Arabia reached 1.7% for the year 2024 AD, compared to the annual average for the previous year, 2023 AD.
According to the consumer prices report issued by the Authority, this is mainly due to the increase in the prices of housing, water, electricity, gas and other fuels by 8.8%, and food and beverages by 0.8%, which has an upward impact on the inflation rate.

Housing section height

The prices of housing, water, electricity, gas, and other types of fuel increased by 8.8%, affected by the rise in residential rental prices by 10.6%. The rise of this section had a significant impact on the rise in annual inflation.
The prices of the food and beverages section increased by 0.8%, affected by the increase in meat and poultry prices by 1.3%.
The prices of the restaurants and hotels section increased by 2.0%, affected by the increase in the prices of hotel services and furnished apartments by 5%.
The prices of the miscellaneous personal goods and services section increased by 0.4%, affected by the increase in the prices of jewelry, watches of all kinds, and precious antiques by 14.4%.
The prices of the education department increased by 1.3%, affected by the increase in the prices of middle and secondary education by 3.5%, as well as the increase in the prices of pre-primary and primary education by 1.9%.
The prices of the clothing and footwear division decreased by 3.4%, affected by a decrease in the prices of ready-to-wear clothing by 5.8%.
The prices of the home furnishing and equipment division decreased by 3.4%, affected by the decrease in the prices of furniture, carpets and floor coverings by 5.5%.
According to the report, transportation department prices decreased by 2.4%, affected by a 3.7% decrease in transportation services prices.
The prices of the communications division decreased by 1.7%, affected by the decrease in the prices of communications devices by 12.7%.
The prices of the Entertainment and Culture Department decreased by 1.3%, affected by the decrease in audio-visual equipment, photography equipment, and information processing equipment by 5.9%.
Health department prices decreased by 1.1%, affected by a 1.3% decrease in hospital services prices, while tobacco department prices decreased by 1.2%, affected by a 1.2% decrease in tobacco product prices.

Inflation in December

The annual inflation rate in Saudi Arabia reached 1.9% last December, compared to December 2023.
This is mainly due to the increase in the prices of the Housing, Water, Electricity, Gas and Other Fuels section by 8.9%, the prices of the Food and Beverages section by 0.8%, and the prices of the Miscellaneous Personal Goods and Services section by 2.2%, compared to a decrease in the prices of the Transportation section by 2.5%.
The Housing, Water, Electricity, Gas and Other Fuels section increased by 8.9%, and was affected by the increase in the total rents paid for housing by 10.6% in December 2024, affected by the increase in villa rental prices by 9.9%.
The increase in this section had a significant impact on the continuation of the annual inflation rate for the month of December 2024, due to the weight represented by this section, which amounts to (25.5%).
Food and beverage section prices rose by 0.8%, driven by a 2.9% increase in meat and poultry prices.
The prices of the miscellaneous personal goods and services section rose by 2.2%, affected by the increase in the prices of jewelry, watches of all kinds, and precious antiques by 20.2%.
The prices of the restaurants and hotels section increased by 0.9%, driven by an increase in the prices of hotel services and furnished apartments by 2.3%.
The Education Department recorded an increase of 1.1%, affected by the increase in the prices of education fees for the middle and secondary levels by 1.8%.
The prices of the home furnishing and equipment division decreased by 2.8%, affected by the decrease in the prices of furniture, carpets and floor coverings by 5.1%.
According to the report, the prices of the clothing and footwear division decreased by 2.2%, affected by the decrease in ready-made clothing prices by 4.2%.
Transport department prices recorded a decrease of 2.5%. Affected by a decrease in vehicle purchase prices by 3.9%.

Stability on a monthly basis

Compared to November 2024, and on a monthly basis, the Consumer Price Index (inflation) in December 2024 recorded relatively stability compared to November 2024.
While the detailed analysis of the index witnessed varying changes at the section level, in terms of increases: the housing, water, electricity, gas and other fuels section rose by 0.5%, driven by an increase in actual housing rental prices by 0.6%.
The index witnessed a slight increase in the food and beverage section by 0.1%. As a result of the increase in meat and poultry prices by 0.5%.
The index decreased in the prices of: the clothing and shoes section by 0.2%, the transportation section by 0.3%, the home furnishing and equipment section by 0.4%, the miscellaneous personal goods and services section by 0.1%, the restaurants and hotels section by 0.2%, and the entertainment and culture section by 0.6%. and the Communications Department by 0.1%.
On the other hand, the prices of health, education, and tobacco services did not record any significant relative change in December 2024.