Inflation in Saudi Arabia stabilizes at 1.6% in May

Government data showed on Sunday that the annual inflation rate in Saudi Arabia remained at 1.6 percent for the third month in a row in May, while rising housing rents remain the main driver.
Actual housing rents increased by 10.5 percent compared to last year, affected by a 14.3 percent increase in apartment rents, according to the General Authority for Statistics.
In general, prices in the housing, water, electricity, gas and other fuel sectors increased by 8.7 percent compared to last year.

The prices of the food and beverage division increased by 1.4 percent on an annual basis, while the hotels and restaurants division recorded an increase of 2.5 percent, affected by a 1.9 percent increase in the prices of catering services.

The prices of clothing and shoes decreased by four percent compared to last year, affected by a 6.9 percent decrease in the prices of ready-made clothing. Vehicle purchase prices fell by 4.1 percent, which led to a decrease in transportation department prices by 2.4 percent. On a monthly basis, prices rose 0.2 percent in May compared to April.

At less than two percent since the beginning of the year until now, inflation remains relatively low in the Kingdom compared to global levels, as government policies help limit the impact of global price increases.

By Editor

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