Saudi Inflation Rises to 1.6% in August 2024

KSA, 16 September, 2024 : Saudi Arabia's annual inflation rate reached 1.6% in August 2024, according to the General Authority for Statistics (GASTAT). This rise was primarily driven by an 8.9% increase in housing, water, electricity, gas, and other fuels, along with a 0.9% uptick in food and beverage prices. However, transportation prices fell by 3.4%.

The inflation rate edged up from 1.5% in June and July, after a period of stability. The Saudi Cabinet had previously noted the 1.5% inflation in July as a sign of economic strength.

The surge in residential rents, particularly a 10.8% rise in apartment rents, significantly impacted the August inflation rate. The consumer price index showed a modest 0.1% increase from July, with housing-related costs up by 0.4%.

The International Monetary Fund (IMF) projects that inflation in Saudi Arabia will remain stable, supported by the exchange rate peg to the dollar. Analysts at Capital Economics expect inflation to remain low, potentially reaching 2% later this year.

Source : www.saudigazette.com.sa