Inflation figures in Saudi Arabia cooled to 1.5% YoY in June, recording its “lowest rate” in 2024.
Details
The General Authority for Statistics attributed the current Consumer Price Index (inflation) rate to the increase in housing, water, electricity, gas, and fuel prices by 8.4%.
This is in addition to a 1.1% increase in food and beverage prices.
The annual inflation rate decreased last month after stabilizing at 1.6% over the previous three months.
So What
Housing rents are the “biggest driver” in the slowdown of KSA’s inflation in June, recording a 10.1% increase.
This is compared to a 10.4% YoY hike recorded in May.
Some Context
The increase in residential rents is due to the rising demand for housing, coinciding with global companies establishing regional headquarters in the Kingdom.
This has increased the demand for housing by their employees.
