Saudi Arabia's Inflation Update

RIYADH (Reuters) – Saudi Arabia's annual inflation rate rose to 2% in November, up from 1.9% in October, driven primarily by increasing housing rents.

Housing rents surged by 10.8% in November, with apartment rental prices increasing by 12.5%. This rise pushed the combined categories of housing, water, electricity, gas, and other fuels up by 9.1%, significantly influencing overall inflation.

In November, food and beverage prices rose by 0.3%, while personal goods and services saw an increase of 2.7%. The restaurants and hotels category rose by 1.5%, attributed to a 5.9% hike in hotel and furnished apartment services.

Conversely, transportation prices decreased by 2.5%. Month-on-month, prices increased by 0.3% in November.

Throughout the year, inflation in Saudi Arabia has remained between 1.5% and 1.9%, reaching 2% in November after a slow increase beginning in July. Compared to global levels, Saudi inflation remains relatively low, with the International Monetary Fund projecting stability around 2% in the medium term.