Saudi Arabia's Inflation Rate Slightly Decreases to 1.9% in December

RIYADH — According to the latest figures from the General Authority for Statistics (GASTAT), Saudi Arabia's Consumer Price Index (CPI) dropped to 1.9% in December 2024, a modest decline from the previous month's rate of 2%. Despite this decrease, the nation maintains one of the lowest inflation rates among G20 countries.

The slight rise in inflation has been primarily influenced by an 8.9% surge in costs associated with housing, water, electricity, gas, and other fuels. Further contributing factors include a 0.8% increase in food and beverage prices, alongside a 2.2% hike in miscellaneous personal goods and services. Conversely, transportation costs decreased by 2.5%.

Housing expenses, particularly rent, played a significant role, witnessing a 10.6% rise and representing 25.5% of the index's total weight. On a monthly scale, the consumer price index demonstrated relative stability compared to the preceding month. Fluctuations were observed at the sectional level, including a 0.5% rise in the housing and utility sector and a 0.1% increase in food and beverages due to higher meat and poultry prices.

The annual wholesale price index also experienced a 1.2% increase, driven by a substantial 12% rise in refined petroleum products and a 7.9% increase in basic goods. Other notable changes included a 3.2% rise in agricultural and fishery products and a minor decrease in food and beverage prices, influenced by a decline in dairy and meat prices.

The CPI is an indicator reflecting the price variations consumers witness for a consistent basket of 490 goods and services, based on a 2018 household survey. The statistics are collected through on-site visits to various sales points.