GASTAT: Saudi Inflation Declines in February 2023

Saudi Arabia’s inflation rate has softened to 3 % in February 2023, against 3.4 % recorded in January, driven by a slight decrease in food and beverage prices, according to the latest report released by the General Authority for Statistics. The inflation rate in Saudi Arabia stood at 3.3 % and 2.9 % in December and November, respectively.

The monthly consumer price index was affected by 0.6 % fall in food and beverages prices, as a result of the decrease in food by 0.7 %. The GASTAT data revealed that transport prices also fell by 0.5 % in February against the previous month, mainly due to the decrease in motor car prices by 0.9 %. This is followed by a fall of 0.5 % in furnishings, household equipment and maintenance prices. However, on a year-on-year basis, the inflation continues to rise in line with the global trend as the Kingdom's inflation stood at 1.6 % in February 2022.

The GASTAT report noted that the rise in Saudi Arabia’s consumer price index in February was primarily driven by higher prices of housing, water, electricity, gas, and other fuels which went up by 7 %. On the other hand, prices of food and beverages went up by 3.1 % in February compared to the last year. The report noted that housing, water, electricity, gas, and other fuel prices were increased due to the rise in actual rentals for housing by 8.3 %, which in turn was affected by the increase in apartment rental prices by 21.4 %.