‎Housing takes toll on inflation index: Analysts

‎Housing takes toll on inflation index: Analysts

While the countries of the world are recording sharp increases in inflation rates following the impact of the Corona pandemic on their economies, the inflation rate in Saudi Arabia fell to 2.3% during July 2023, hitting its lowest level in more than a year.

A number of analysts explained that the housing item is still the main influence on the inflation index, while the movement and high demand in the Kingdom for housing units is a health factor on the Kingdom's outstanding economic performance, according to a poll by Argaam.

They added that the inflation factor in the rental rate came as a result of the high demand, which created a competitive atmosphere, as landlords tend to raise the rental prices due to high demand.

The General Authority for Statistics (GASTAT) pointed out that the inflation stability was driven by the strength of the Saudi economy, and the great positive impact that resulted from the economic procedures and measures made by the Kingdom from an early stage to face the global rise in inflation rates.

The authority also indicated that inflation rates in Saudi Arabia maintain a reasonable level and balanced ratios compared to most countries of the world.

Impact of rent and housing

Meanwhile, Hussein