Jeddah, Riyadh report highest inflation among Saudi cities in January

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Saudi Arabia’s inflation rose to 3.4% in January, compared to December 2022, according to recent data by the General Authority for Statistics (GASTAT).

 

Inflation rose globally after the repercussions of the COVID-19 pandemic, Russia-Ukraine war, impact of supply chains and rise in transportation costs.

 

Saudi Arabia is still among the countries with the lowest inflation rates globally. Minister of Finance Mohammed Al-Jadaan expected inflation in the Kingdom to decline to about 2.5-2.6% in 2023, from about 3.3% last year.

 

As for the inflation rate by city included in the report of GASTAT, all Saudi cities recorded various increases in January.

 

Jeddah had the highest inflation at 6.8%, followed by Riyadh (4%) and Al Hofuf (3.5%), while Abha had the lowest inflation rate at 0.02%.

 

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 by being compared to the previous month.

 

The following is the inflation rate in Saudi cities for January 2023:

 

The bulletin covers data related to the Consumer Price Index (CPI) for all 13 administrative regions of the Kingdom by collecting prices through field visits to pre-defined points of sale (POS) and residential units. This includes Riyadh, Makkah, Jeddah, Taif, Madina, Qassim, Dammam, Al Hofuf, Abha, Tabuk, Hail, Arar, Jizan, Najran, Al Baha and Al Jouf.

 

The selection process in each city of the survey is based on population rate, as shown in the following table:

 

 

Jeddah sees highest housing rents, nine cities record decline

 

Housing, water, electricity, gas and other fuels sector logged an increase of about 19.5% in Jeddah, affected by actual housing rents that rose by 23.3%.

 

This sector weighed the most in calculating the general inflation rate at 25.5%.

 

Riyadh came second and was followed by Hail. Meanwhile, nine cities recorded a decrease in housing rents in different proportion.

 

Buraydah records highest inflation rate in food sector

 

Buraydah topped the highest inflation rate in the food and beverages (F&B) sector at 7.5%, followed by Jizan (7.4%) and Arar (6.6%). Al Hofuf had zero inflation in this sector.

 

It is noteworthy that this sector is the second highest weight in calculating the general inflation rate at 18.78%.

 

Al Hofuf highest in transport, Al Baha lowest

 

Al Hofuf was the highest gainer in the transport sector at 15.2%, followed by Taif at 11.7% and Jeddah at 5.5%. Al Baha saw a 5.8% deflation in transport sector during January.

 

Najran posts highest inflation in miscellaneous goods & services

 

Najran saw the highest inflation in the miscellaneous personal goods and services sector, followed by Abha, while Dammam was the lowest.

 

Al Baha, Najran top furnishings, household equipment & maintenance sector

 

Al Baha recorded the highest rate of inflation in the furnishings, household equipment and maintenance sector, followed by Najran and Tabuk, while Jeddah came at the end of the list.

 

Jizan highest in communications sector, Al Baha lowest

 

Jizan topped inflation in the communications sector. Dammam and Arar followed, while Al Baha came last.

 

Saudi cities see collective surge in restaurants & hotels sector, Makkah leads

 

The CPI recorded the highest increase in the restaurants and hotels sector in Makkah, followed by Najran and Tabuk. However, Hail registered the lowest increase.

 

Al Hofuf top gainer in clothes & footwear sector; Tabuk, Riyadh log lowest growth

 

The index saw Al Hofuf marking the top gainer in the clothes and footwear sector. Najran followed, while Tabuk and Riyadh had the lowest inflation in this sector.

 

Tabuk, Al Baha highest in recreation & culture sector, Sakaka lowest

 

Recreation & culture sector saw the highest inflation in Tabuk, followed by Al Baha, with the lowest rate in Sakaka.

 

Al Hofuf, Abha top gainers in education; Hail posts weakest growth

 

The education sector recorded the highest increase in Al Hofuf, followed by Abha, while Hail was the lowest.

 

Healthcare sector sees Al Hofuf, Makkah, Abha logging highest inflation

 

The healthcare sector saw the highest inflation rate in Al Hofuf, followed by Makkah, while Jizan saw the lowest rate. 

 

On the other hand, tobacco prices increased the most in Najran and Makkah. They, however, decreased the most in Taif. 

 

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

 

Prices are collected through POS field visits.

 

 

 The following table shows relative importance of subsectors:

 

 

Details and Historical Data of Inflation