The pace of inflation in Saudi Arabia accelerated in June to its highest level since August 2020, influenced by a significant increase in transportation and food and beverage prices. The consumer price index recorded a year-on-year increase of 6.2% in June, compared to 5.7% in May 2021. On a monthly basis, inflation rose by 0.2%, aligning with the increase in May, according to data from the General Authority for Statistics.
The Authority stated in a statement on Thursday that the rise in transportation prices had a significant impact on the annual inflation rate in June, due to its weight in the index. It clarified that when excluding the impact of transportation prices, the annual inflation rate would reach 3.4%.
Key annual data:
- Transportation prices jumped by 22.6%.
- Food and beverage prices increased by 8.1%.
- The communications sector recorded a rise of 13.2%.
The Authority noted that the Consumer Price Index still reflects the increase in the value-added tax from 5% to 15%, which was implemented in July 2020.
The Consumer Price Index (CPI) in Saudi Arabia reflects the changes in prices paid by consumers for a fixed basket of goods and services consisting of 490 items, selected based on the results of the spending and income survey conducted in 2018.
