Saudi Gazette report

RIYADH — Saudi Arabia's Consumer Price Index or inflation rate recorded 1.9 percent during the month of December 2024, a slight fall from the previous month of November when it posted two percent on an annual basis. Saudi Arabia has the lowest inflation rates among the G20 countries.

According to the data released on Wednesday by the General Authority for Statistics (GASTAT), the rise in inflation is driven by an the increase in the prices of the housing, water, electricity, gas and other fuels by 8.9 percent. It also affected by an increase of 0.8 percent in the prices of the food and beverages, and the prices of the miscellaneous personal goods and services by 2.2 percent, compared to a decrease in the prices of the transport by 2.5 percent.

The increase in the prices of housing, water, electricity, gas and other fuels was affected by the increase in the group of rents paid for housing by 10.6 percent, and the increase in this section had a significant impact on the continuation of the annual inflation rate for December 2024, given the weight that this section represents 25.5 percent.

On a monthly basis, the consumer price index in December recorded relative stability compared to November 2024, while the detailed analysis of the index witnessed varying changes at the section level, as the prices of the housing, water, electricity, gas and other fuels section increased by 0.5 percent, driven by a 0.6 percent increase in actual residential rental prices.

The index also witnessed a slight increase in the food and beverages section by 0.1 percent as a result of a 0.5 percent increase in meat and poultry prices, while the index witnessed a decrease in the prices of the clothing and footwear section by 0.2 percent, the transport section by 0.3 percent, the home furnishings and equipment section by 0.4 percent, the miscellaneous personal goods and services section by 0.1 percent, the restaurants and hotels section by 0.2 percent, the entertainment and culture section by 0.6 percent and the communications section by 0.1 percent.

On the other hand, the prices of health, education and tobacco services did not record any relative change in December 2024.

Meanwhile, the GASTAT announced an increase in the wholesale price index in the Kingdom on an annual basis by 1.2 percent during December 2024 compared to its counterpart in 2023. It said that this increase is mainly attributed to the increase in the prices of other transportable goods by 2.4 percent, due to the increase in the prices of refined petroleum products by 12 percent, and the prices of basic and other transportable goods not classified elsewhere by 7.9 percent.

On an annual basis, the section of other transportable goods except for metal products, machinery and equipment witnessed an increase in their prices by 2.4 percent in December 2024, compared to the same month in 2023, as a result of the increase in the prices of refined petroleum products by 12 percent, and the increase in the prices of furniture and other transportable goods, not classified elsewhere, by 7.9 percent.

In the same context, prices of agricultural and fishery products increased by 3.2 percent, driven by a 5.3 percent increase in agricultural products and a 1.9 percent increase in fish and other fishery products.

On the other hand, prices of food products, beverages, tobacco and textiles decreased by 0.1 percent , as a result of a 2.7 percent decrease in prices of meat, fish, fruits, and vegetables and a 1.6 percent decrease in dairy products, while prices of metal products, machinery and equipment stabilized and did not record any relative change in December 2024.

On a monthly basis, average wholesale prices witnessed a slight increase of 0.2 percent in December 2024 compared to the previous month of November, due to a 0.5 percent increase in other transportable goods except metal products, as a result of a 3.5 percent increase in prices of basic chemicals and a 0.5 percent increase in prices of glass and non-metallic products.

The Consumer Price Index 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.