Saudi Gazette report

RIYADH — Saudi Arabia's annual inflation eased to 2 percent in August, from 2.3 percent the previous month.

According to the data released by the General Authority for Statistics (GASTAT) on Thursday, inflation continued its downwards trend for the third month in a row this year, recording the slowest pace in 14 months. The percentage change in the Consumer Price Index (inflation rate) continued to decline in August for the third month in a row, from 2.8 percent last May to 2.7 percent in June and 2.3 percent in July.

The GASTAT report showed that the inflation rate increased on an annual basis, as a result of an increase in the prices of housing, water, electricity, gas, and other types of fuel by 9 percent, and the prices of food and beverages by 0.4 percent. The main driver of inflation remained increasing housing rents which rose 10.8 percent. The increase in housing rents were affected by the increase in apartment rental prices by 22.5 percent. The rise in this group had a significant impact on the rise in annual inflation in August 2023, given its large weight in the index of 21percent.

Food and beverage prices, the leading driver for price increases for much of last year, ticked up 0.4 percent, and transport prices grew 0.5 percent, while prices for clothing and footwear, and furnishings and household equipment decreased. Food and beverage prices increased due to the increase in the prices of milk, dairy products, and eggs by 5.9 percent.

The inflation rate was relatively stable on a monthly basis at 0.03 percent compared to July 2023. The general index reached 109.71 points in August, compared to 107.61 points in August 2022, and 109.68 points in July 2023. Therefore, the percentage change was 1.95 percent in August, on an annual basis, and 0.03 percent on a monthly basis.