Saudi Arabia’s Inflation Eases to 1.6 Percent in March
In a recent report, Saudi Arabia’s inflation rate decreased to 1.6 percent in March, down from 1.8 percent the previous month. The decline was mainly driven by changes in the food and beverage sector. The General Authority for Statistics revealed that the Consumer Price Index in the Kingdom experienced a slight decrease of 0.1 percent in March compared to February.
Monthly Inflation Trends
The monthly inflation index was influenced by a 0.7 percent decrease in the food and beverage sector, primarily due to a 0.6 percent drop in meat and poultry prices. Additionally, prices in transportation, furnishing, and home equipment sectors also saw declines of 0.7 percent each. Recreation and culture, communications, and tobacco prices experienced decreases as well.
Annual Inflation on the Rise
Despite the monthly decrease, the Kingdom’s CPI increased by 1.6 percent in March 2024 compared to the same period last year. This rise was primarily attributed to increases in housing, water, electricity, gas, and other fuel prices. Prices of transportation and personal goods and services decreased on an annual basis.
Wholesale Price Index
In another report, GASTAT noted that Saudi Arabia’s wholesale price index rose by 3.8 percent in March compared to the same month in 2023. The increase was driven by higher prices of basic chemicals and refined petroleum products. Categories like food, beverages, tobacco, and textiles also saw price rises.
Real Estate Price Surges
GASTAT reported that the Real Estate Price Index rose by 0.6 percent in the first quarter of 2024 compared to the previous year. Residential land costs experienced a notable uptick, while commercial real estate and agricultural land sales saw declines. The residential real estate division saw a significant increase, particularly in housing prices.