Saudi Arabia's yearly inflation rose to 1.7% in September due to an increase in utility costs

Saudi Arabia’s yearly inflation rose to 1.7% in September due to an increase in utility costs

Saudi Arabia’s yearly inflation rate went up to 1.7% in September because of higher utility bills and increased food and drink prices, according to official data shared on Sunday.

Saudi September inflation

The consumer prices in the Gulf country increased slightly by 0.1% in September compared to the previous month, based on data from the General Authority for Statistics (GASTAT).
Over the past year, housing, water, electricity, gas, and other fuel costs rose by 9.3%. Food and drink prices went up by 0.8%, mainly due to a 5.2% increase in vegetable prices.
Rent also became more expensive, with house rents rising by 11.2% and apartment rents increasing by 10% over the past year, driving up overall housing costs.
Other sectors that saw price increases include education (1.6%) and hotels and restaurants (1.7%).

Price declines

Data from GASTAT showed that higher consumer prices were balanced by big price drops in several areas, such as furniture, household equipment, and maintenance, along with transport, clothing, and footwear. Prices in these categories went down by 3.7%, 3.3%, and 3.2%, respectively, compared to the same time last year.

Spending on recreation and culture decreased by 2.8%, while communication costs fell by 1.6%, helping to ease the impact of rising prices elsewhere. Additionally, tobacco prices dropped by 1.5%, and health costs went down by 1.1%, which also helped keep overall consumer prices stable.

Saudi economy

Saudi Arabia’s economy is expected to grow by 0.8% in 2024, 4.6% in 2025, 3.5% in 2026, and 4.7% in 2027, based on early data from the Ministry of Economy and Planning released in September.

Inflation (the rise in prices) is expected to go up from 1.7% in 2024 to 1.9% in 2025 and stay at that level until 2027. Over the past year, inflation in the country has stayed between 1.5% and 1.8%, according to GASTAT.

Big numbers

Saudi Arabia expects to earn $315.6 billion (SAR 1.18 trillion) in 2025 but plans to spend $342.5 billion (SAR 1.28 trillion). This means the country will have a budget shortfall of about $27 billion (SAR 101 billion).

Published: 15th October 2024

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