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

The Saudi government is trying to raise home ownership among nationals to 70 percent of the population by 2030, which is helping to drive up residential property prices

Residential price rise counters slip in Saudi commercial property

Residential property was the driving force behind a rise in Saudi Arabian real estate prices in the first quarter of 2024 as prices of commercial real estate fell, government statistics released this week showed.  The overall real estate price index rose by 0.6 percent compared with the same quarter in 2023. But while there was […]

Residents in Muscat. Oman's government is taking steps to increase the size of its debt market

Sukuk takes bigger slice of Oman’s shrinking debt market

Oman’s total debt capital market contracted by 7 percent to $44 billion last year as the government took advantage of its budget surplus from higher oil and gas prices to make early payments. The energy boon helped its budget surplus total $2.4 billion. Despite the shrinking debt market Fitch Ratings said sukuk issuance in Oman […]

Marcel Ciolacu, Romania's PM, speaks to reporters in Rome. He is now in Qatar for trade talks

Romania touts $16bn of opportunities as PM visits Qatar

Romania is looking to secure €15 billion ($16 billion) of investment from Qatar during a visit by its prime minister, Marcel Ciolacu. He is set to hold talks with Qatar’s prime minister and minister of foreign affairs, Mohammed bin Abdulrahman bin Jassim Al Thani. Ciolacu is also due to have discussions with representatives of Qatar […]

The under-construction Zayed National Museum in Abu Dhabi

UAE wealth fund ADQ buys stake in Abu Dhabi builder

UAE sovereign wealth fund ADQ is acquiring a stake in the construction company building the Guggenheim and Zayed National museums in Abu Dhabi. Alpha Dhabi Holding (ADH), an investment holding company, announced in a filing to the Abu Dhabi Stock Exchange on Tuesday that it will divest 49 percent of its subsidiary Alpha Dhabi Construction […]