Saudi Gazette report

RIYADH — Saudi Arabia's annual inflation rate reached 2.3 percent in March 2025, up 0.3 percent compared to the previous month and the same period last year. The increase in Consumer Price Index or inflation was mainly impacted by an 11.9 percent increase in apartment rents, according to the monthly statistics bulletin published by the General Authority for Statistics (GASTAT) on Tuesday.

It is noteworthy that the annual inflation rate remained stable at two percent in February 2025, maintaining the same year-on-year rate as the previous year. However, inflation rose to 2.3 percent in March, compared to 2 percent in February, and this was attributed to a 6.9 percent increase in housing, water, electricity, gas, and fuel prices, driven by an 8.2 percent increase in housing rents, which in turn was impacted by an 11.9 percent increase in apartment rents.

Food and beverage prices also recorded an increase of 2 percent, driven by a 3.8 percent increase in meat and poultry prices. Prices of miscellaneous personal goods and services also rose by 3.9 percent, impacted by a 26.2 percent increase in jewelry, watches, and valuable antiques prices.

Prices of restaurants and hotels also rose by 1.3 percent, driven by a 3.3 percent increase in hotel services and furnished apartments prices. Meanwhile, the education sector recorded a 1.1 percent increase, impacted by a 4.3 percent increase in higher education fees.

On the other hand, prices of the home furnishings and equipment category recorded a decrease of 2.6 percent, impacted by a 4.1 percent decline in furniture, carpets, and floor coverings. Prices in the clothing and footwear category also decreased by 0.8 percent, impacted by a 1.9 percent decline in ready-made garments.

Meanwhile, prices in the transportation category decreased by 0.8 percent, impacted by a 1.5 percent decline in vehicle purchase prices.