Government data released today, Wednesday, showed that the annual inflation rate in Saudi Arabia decreased to 1.6% in October from 1.7% in the previous month, with housing rents being the main driver once again. The General Authority for Statistics reported that the prices of housing, water, electricity, gas, and other fuels increased by 7.8% in October, driven by an overall rise in housing rents of 9.3%, including a nearly 15% increase in apartment rents.
Food and beverage prices, which were the main driver of inflationary pressures throughout most of 2022, rose by 0.8% in October, while restaurant and hotel prices increased by almost 2% due to rising catering service costs.
Inflation has seen a slow decline in Saudi Arabia this year and has remained relatively under control compared to global inflation levels, partly due to government policies to manage rising prices. The government anticipated that inflation would reach 2.6% in 2023 before falling to 2.2% in 2024.
