Jeddah, Buraydah, Riyadh report highest inflation among Saudi cities in July

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Saudi Arabia’s inflation declined to 2.3% month-on-month (MoM) in July 2023, recording its lowest level in more than a year, recent data by the General Authority for Statistics (GASTAT) showed.

 

Meanwhile, the Kingdom recorded one of the lowest inflation rates among the G20 countries in July, according to Trading Economics statistics.

 

GASTAT said the latest inflation rate affirmed that the strength of the country’s economy, and the positive impact from the economic procedures and measures applied to confront higher inflation worldwide.

In terms of cities, Jeddah had the highest inflation at 5.4%, followed by Buraydah and Riyadh at 3.3% each.

 

On the other hand, Taif, Dammam, Arar, Al Baha, Tabuk and Jazan witnessed a negative inflation rate.

 

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 July 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, eight cities record decline

 

Housing, water, electricity, gas and other fuels sector logged an increase of about 20.65% in Jeddah, affected by actual housing rents that rose by 24.84%.

 

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

 

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

 

Najran logs highest inflation rate in food sector

 

Najran topped the highest inflation rate in the food and beverages (F&B) sector at 5.5%, followed by Buraydah (4.5%) and Al Baha (3.44%). Abha saw a 1.79% deflation 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 6.91%, followed by Buraydah and Jeddah at 4.5% each. Tabuk saw a 7.25% deflation in transport sector during July.

 

Abha posts highest inflation in miscellaneous goods & services

 

Abha saw the highest inflation at 4.5% in the miscellaneous personal goods and services sector, followed by Al Hofuf and Arar at 2.8% and 2.14%, respectively.

 

Jazan and Jeddah saw a 9% and 2%, respectively deflation in this sector by end of July.

 

Buraydah, Najran top furnishings, household equipment & maintenance sector

 

Buraydah and Najran recorded the highest rate of inflation in the furnishings, household equipment and maintenance sector.

 

Tabuk highest in communications sector, Taif lowest

 

Tabuk topped inflation in the communications sector. Madinah followed, while Taif came last.

 

All cities see surge in restaurants & hotels sector, Abha leads

 

The Consumer Price Index (CPI) recorded the highest increase in the restaurants and hotels sector in Abha, followed by Najran and Sakaka. However, Madinah registered the lowest increase.

 

Buraydah top gainer in clothes & footwear sector; Tabuk logs lowest growth

 

The index saw Buraydah marking the top gainer in the clothes and footwear sector. Sakaka followed, while Tabuk and Al Baha had the lowest inflation in this sector.

 

Buraydah, Riyadh highest in recreation & culture sector, Sakaka lowest

 

Recreation & culture sector saw the highest inflation in Buraydah at 8.8%, followed by Riyadh at 4%, with the lowest rate in Sakaka at 11.9%.

 

Abha, Riyadh top gainers in education; Hail posts weakest growth

 

The education sector recorded the highest increase in Abha at 8.8%, followed by Riyadh at 4.6%, while Hail was the lowest at 3.5%.

 

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

 

The healthcare sector saw the highest inflation rate in Dammam at 3.46%, followed by Al Hofuf at 2.6%, while Jazan saw a deflation of 4%. 

 

On the other hand, tobacco prices increased the most in Abha and Riyadh. 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