Saudi Inflation Hits Two-Year Low in December

Saudi Inflation Hits Two-Year Low in December

Saudi Arabia’s inflation slowed to 1.5 percent in December 2023, compared to 1.7 percent in the previous month, official data showed.

This places the Kingdom second among G20 nations for the lowest inflation rates, following the Netherlands at 1.2%.

According to the latest report from the General Authority for Statistics, the average inflation for all of 2023 was 2.3%, down from 2.5% in 2022.

This falls below the Ministry of Finance’s prediction of 2.6% for 2023, as outlined in the 2024 budget statement.

The report also highlighted a 9% increase in actual housing rents in December (down from 9.4% in November), driven by a 12.1% surge in apartment rental prices.

This category heavily influenced the December 2023 annual inflation rate, given its substantial 21% weight in the index.

Food and beverage prices also increased by 1.2%, affected by the increase in the prices of milk, dairy products, and eggs by 4.1 percent.

The restaurants and hotels segment also recorded an increase of 2.5%, affected by the increase in the prices of catering services by 2.2%.

The entertainment and culture sector recorded an increase of 1.0%, affected by the increase in the prices of holiday and tourism offers by 7.1%, and the education segment also recorded an increase of