Saudi Gazette report

RIYADH — Saudi Arabia's Consumer Price Index (CPI) or inflation rate rose to two percent in November on an annual basis, its highest level in 15 months, according to the data released by the General Authority for Statistics (GASTAT). The inflation rate was 1.9 percent in the previous month of October.

Despite the rise, Saudi Arabia has the lowest inflation rates among the G20 countries. The rise in inflation is driven by a 9.1 percent rise in housing, water, electricity, gas and other fuels, and a 2.7 percent rise in personal goods and services, while transportation prices fell by 2.5 percent.

According to the CIP rate issued by the GASTAT on Sunday, the housing, water, electricity, gas and other fuels section rose by 9.1 percent, affected by a 10.8 percent rise in the rents paid for housing group in November, due to a 12.5 percent increase in apartment rents.

The rise in this section had a significant impact on the continuation of the annual inflation rate for November 2024, given the weight that this section represents, which amounts to 25.5 percent. In the same context, the prices of the miscellaneous personal goods and services section rose by 2.7 percent during November, affected by the rise in the prices of jewelry, watches of all kinds, and precious antiques by 23.7 percent.

The prices of the restaurants and hotels section increased by 1.5 percent, driven by a 5.9 percent increase in the prices of hotel services and furnished apartments, while the education section witnessed a 1.1 percent increase, affected by a 1.8 percent increase in the prices of intermediate and secondary school fees.

While food and beverage prices recorded a slight increase of 0.3 percent, driven by a 1.9 percent increase in the prices of meat and poultry. On the other hand, the prices of the home furnishing and equipment section decreased by 2.9 percent, affected by a 4.4 percent decrease in the prices of furniture, carpets and floor coverings.

The prices of the clothing and footwear section decreased by 2.3 percent, affected by a 4.6 percent decrease in the prices of ready-made clothes, while the prices of the transportation section decreased by 2.5 percent, affected by a 3.9 percent decrease in the prices of vehicle purchases.

It is noteworthy that the CPI reflects changes in prices paid by consumers for a fixed basket of goods and services consisting of 490 items. This basket was selected based on the results of the household expenditure and income survey conducted in 2018. Prices are collected through on-site visits to sales points.