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Annual inflation in Saudi Arabia declines during March

The Clap

The annual inflation rate in Saudi Arabia decreased to 1.6% during last March, according to the General Authority for Statistics. This comes after reaching the “highest level” in six months in February, at 1.8%.

Prices

Data showed an increase in prices of housing, water, electricity, gas, and other fuels by 8.8% in the previous month.

Additionally, food and beverages rose by 0.9%. This is contrasted by a decrease in transportation prices by 1.8%, and miscellaneous goods and services by 1.1%.

So What

Actual rents for housing increased in March by 10.5% YoY. This was influenced by the rise in villa rents by 9.7%. This significantly contributed to the inflationary pressure, given the weight of this group in the index, which is 21%.

Some Context

The Authority revealed an increase in the real estate price index in the Kingdom by 0.6% during Q1-24, compared to the same period in 2023. This is a result of the increase in residential real estate prices by 1.2%.

Meanwhile, prices of real estate in both the commercial sector decreased by 0.5% and the agricultural sector by 0.1%.