Saudi Gazette report

RIYADH — Saudi Arabia’s Consumer Price Index (CPI) or inflation rate continued to decline for the fifth month in a row, recording 1.6 percent in October compared to the same month last year.

According to the latest data released on Wednesday by the General Authority for Statistics (GASTAT), the rate of inflation was the lowest since February 2022 when it was 1.6 percent. The inflation recorded a decrease of 0.1 percent in October from 1.7 percent in September this year.

Inflation continued the downward trend for the fifth month in a row this year, recording the slowest pace in 16 months. The percentage change in the CPI continued to decline over the last five months, from 2.8 percent in May to 2.7 percent in June, 2.3 percent in July, 2 percent in August, 1.7 percent in September and 1.6 percent in October.

It is noteworthy that the CPI measures change in the prices paid by consumers for a fixed basket of goods and services consisting of 490 items, and the relevant prices are collected through field visits to points of sale. The GASTAT data showed that actual rents for housing increased by 9.3 percent in October, affected by the increase in apartment rental prices by 14.9 percent.

The rise of this group had a significant impact on the rise in annual inflation for the month of October due to its large weight in the index, which amounts to 21 percent. Food and beverage prices also recorded an increase of 0.8 percent, affected by the increase in the prices of milk, dairy products, and eggs by 4.4 percent.

The stability in the inflation rate reflects the strength of the Saudi economy and the effectiveness of the economic procedures and measures that were implemented at a fast pace. The Kingdom took early measures to confront the global rise in inflation rates