Saudi inflation stable at 1.6% in April

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Saudi Arabia’s inflation remained unchanged month-on-month at 1.6% in April, according to recent data by the General Authority for Statistics (GASTAT).

The cost-of-living index for April rose to 110.89 points, according to the base year 2018, from 109.16 points in the same month a year earlier.

Inflation is measured by the change percentage in the cost of living between the current period and the corresponding period of the previous year. The increase or decline of inflation is measured compared to the previous month.

The higher consumer price index (CPI) was mainly driven by an 8.7% year-on-year (YoY) rise in housing, water, electricity, gas and other fuel prices.

Actual housing rents increased by 10.4% YoY in April, reflecting the rise in villa rents by 9.4%. The rise in this section significantly impacted the annual inflation increase for April, given its weight in the index.

Food and beverage section rose 0.8% YoY due to an increase in meat and poultry prices by 1.8%, while restaurants & hotels section rose 2% YoY due to the rise in the prices of catering services by 1.8%.

On the other hand, furnishing, household equipment and maintenance retreated by 3.9% YoY last month affected by a decrease in the prices of furniture, carpets and flooring by 6%.

Meanwhile, the clothing and footwear section dropped by 4.2% YoY and transportation slid by 1.6% YoY on 2.9% lower vehicle purchase prices, as shown in the following table:

The CPI reflects price changes of a fixed basket of goods and services that includes 490 items. The items were chosen based on the results of the Household Expenditure and Income Survey conducted in 2018.

Inflation in Riyadh, Madinah, Taif, Buraydah, Hail and Najran rose month-on-month (MoM), but declined in Jeddah, Dammam, Al Hofuf, Abha, Sakaka and Arar.

Makkah, Tabuk, Jizan and Al Baha reported negative inflation figures for the same month.

The table below shows the inflation rate in Saudi cities during April 2024: