Riyadh September 14 2023: In August, Saudi Arabia's inflation dropped to 2%, marking the lowest level in 18 months when compared to the previous month. This information is based on recent data released by the General Authority for Statistics (GASTAT).
The cost-of-living index for August, calculated with a base year of 2018, increased to 109.71 points, up from 107.61 points for the same month in the previous year.
Inflation is quantified as the percentage change in the cost of living between the current period and the corresponding period in the previous year, with variations in inflation also assessed concerning the previous month's data.
The increase in the Consumer Price Index (CPI) for August was primarily driven by an 8.95% year-on-year (YoY) surge in the housing, water, electricity, gas, and other fuels category. Within this category, actual housing rents experienced a substantial 10.8% YoY increase, driven by a noteworthy 22.5% rise in apartment rental prices.
This particular item had the most significant influence on inflation rates, accounting for 21% of the overall index.
Additionally, there was a marginal 0.4% YoY uptick in food and beverage prices, primarily attributed to a 5.9% YoY increase in prices for milk, dairy products, and eggs.
Conversely, the furnishing and household equipment category witnessed a 3.2% YoY decrease, mainly due to a 4.6% YoY decline in the prices of furniture, carpets, and floor coverings.
Furthermore, the clothing and footwear category registered a 4.2% YoY decline in prices during the same month.
When looking at the monthly data, we observe that inflation increased in Al Madinah, Al Hofuf, Abha, and Buraydah. However, it decreased in Riyadh, Makkah, Jeddah, and Hail.
The inflation rate remained steady in Najran.
Conversely, Arar, Sakaka, Al Baha, Jizan, Taif, Tabuk, and Dammam all reported negative inflation figures for the same month.
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