Data from Saudi Arabia's General Authority for Statistics revealed indicators showing a significant drop in education and housing prices, leading inflation rates to approach zero in August. Contrary to the global trend of rising inflation rates, the consumer price index in Saudi Arabia recorded a slowdown in August to 0.3% year-on-year. Additionally, the inflation rate halted at 0.1% month-on-month, with the primary contributor to the slowdown being the decline in education prices, specifically the reduction in prices for pre-primary, primary, intermediate, and secondary education.
Within the sub-indices of inflation, the education sector declined by 7.8%, influenced by a 13.4% drop in pre-primary and primary education prices and a 7.2% decrease in intermediate and secondary education prices. The housing, water, electricity, gas, and other fuel types sector also recorded a decrease of 3.5%, affected by a 4.2% drop in housing rental prices.
The authority's report indicated an increase in transport prices by 6.5% and food and beverage prices by 1.9%. It noted that the transport sector was impacted by a 21.9% rise in the prices of personal transportation equipment operation, which was in turn affected by a 44.3% increase in the prices of fuel and lubricants for personal transportation equipment. This rise significantly impacted annual inflation due to its weight in the index.
Food and beverage prices increased by 1.9%, influenced by a 2% rise in food prices. The tobacco sector rose by 0.6%, affected by a 1.3% increase in cigarette prices. The diverse goods and personal services sector increased by 0.3%, due to a 4.7% rise in the costs of hiring domestic workers, including visa fees. The restaurants and hotels sector increased by 0.6%, influenced by a 2.4% rise in hotel and furnished apartment service prices.
On a monthly basis, the consumer price index remained relatively stable in August 2021, rising by 0.1% compared to July 2021.
