Skip to content Skip to Search
Skip navigation

Saudi inflation continues downward trend to hit 2%

Man in supermarket considering food prices Shutterstock/Prostock Studio
The Turkish central bank has forecast annual inflation to ease to 36 percent by end-2024
  • Down to 2% in August from 2.3%
  • Hit high of 3.4% in January
  • Housing costs continue to rise

Saudi Arabia’s annual inflation eased to 2 percent in August from 2.3 percent the previous month, continuing a downward trend since a high of 3.4 percent in January. 

The main driver of inflation during August was housing and an increase in rents of 10.8 percent, including 22.5 percent for apartments, the General Authority for Statistics said in its monthly release. 

In Riyadh, house prices have been increasing at an unprecedented rate, up 45-50 percent since January 2020 due to an influx of domestic migrants and expats to the capital.

The overall prices of housing, water, electricity, gas and other fuels rose by 9 percent, while food and beverages rose only 0.4 percent, though they were the leading driver for price increases for much of last year. 

Transport prices grew, while prices for clothing and footwear, and furnishings and household equipment decreased. 

Gulf states are seeing a softening in inflation rates in line with a global trend towards stabilisation after supply chain shocks caused by the Covid-19 pandemic and war in Ukraine. 

In one of the fastest-growing regions in the world, some analysts see local inflationary pressures picking up again later in the year. 

However, in a research note on Thursday, James Swanston, Middle East and North Africa economist at Capital Economics in London predicted that Saudi Arabia’s headline inflation rate will continue its downward trend over the remainder of this year, to 1.0-1.5 percent year on year, and remain around this rate into 2024.

Latest articles

More than 24 million people visited the World Expo event at Expo City Dubai between October 2021 and March 2022

Construction begins at Expo City Dubai site

Construction has begun on the first residential properties at Expo City Dubai, part of a mixed-use master plan to repurpose the legacy site after the world fair came to a close two years ago. Master developer Expo City Dubai announced last week that it has awarded four key contracts for its Mangrove Residences. UAE-based USF […]

OTB Group has a presence in Dubai with its Maison Margiela store in the Dubai Mall

Chalhoub Group in venture with Italian luxury brand

Luxury distributor Chalhoub Group has entered into a joint venture with Italian fashion conglomerate OTB Group to expand the brand’s footprint in the Gulf. OTB (which stands for Only The Brave) owns the Diesel, Jil Sander, Maison Margiela, Marni and Viktor&Rolf brands, the Staff International and Brave Kid companies, and holds a stake in the […]

Arid conditions brought about by the drought in Morocco are affecting the cost of sheep

Drought pushes up sheep price for Eid in Morocco

The price for a sheep in Morocco for the annual sacrifice at Eid al-Adha has increased on average at 10 times the 2.2 percent rate of inflation. A medium-sized female sheep costs MAD4000 ($400) as opposed to MAD3000 last year. This puts it out of range for many families in the country where a high […]

Countryside, Farm, Field

Oman to build agricultural city to enhance food security

Oman will build an agricultural city as part of its food security initiative, a news report said. Saham Agricultural City will cover an area of 65 sq km, with 70 percent dedicated to agriculture and 30 percent to urban development, Oman Daily Observer reported. The city will use advanced technologies such as hydroponics, aeroponics and […]