‎Saudi inflation down to 1.5% in June

16/07/2024
Argaam Exclusive

Saudi Arabia’s inflation retreated to 1.5% month-on-month in June 2024, according to recent data by the General Authority for Statistics (GASTAT).

The cost-of-living index for June rose to 111.22 points, according to the base year 2018, from 109.58 points in the same month a year earlier.

Inflation is measured by the percentage change in the cost of living between the current period and the corresponding period of the previous year. The increase or decline of inflation is measured compared to the previous month.

Actual housing rents increased by 10.1% year-on-year (YoY) in June on a 7.9% rise in villa rents. The rise in this section significantly impacted the annual inflation pace in June, given its weight in the index at 21%.

The food and beverage section appreciated by 1.1% YoY as vegetable prices grew by 6.5%. The restaurants and hotels section rose 2.4% YoY as the prices of hotel services and furnished apartments increased by 9.8%.

On the other hand, furnishing, household equipment and maintenance declined by 3.7% YoY in June, hurt by a drop of 6% in the prices of furniture, carpets and flooring. The clothing and footwear section dropped by 3.6% YoY in the same month, affected by a 6.3% decrease in the prices of ready-made clothing, as shown in the following table:

CPI YoY Comparison (June 2023-2024):

Main Groups
Change

Food and Beverages
1.13

Tobacco
1.29

Clothing and footwear
3.62

Housing, Water, Electricity, Gas, and other fuels
8.44

Furnishings, Household equipment
3.74

Health
1.11

Transport
2.71

Communication
2.02

Recreation and Culture
1.99

Education
1.14

Restaurants and Hotels
2.40

Miscellaneous personal goods and services
0.01

The consumer price index (CPI) reflects price changes of a fixed basket of goods and services that includes 490 items. The items were chosen based on the results of the Household Expenditure and Income Survey conducted in 2018.