‎Saudi inflation unchanged at 1.6% in May

Saudi Arabia’s inflation was steady month-on-month at 1.6% in May, according to recent data by the General Authority for Statistics (GASTAT).

The cost-of-living index for May rose to 111.07 points, according to the base year 2018, from 109.37 points in the same month a year earlier.

Inflation is measured by the change percentage 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.

Inflation in Saudi Arabia

Month

Inflation

January 2023

3.4 %

February

3.0 %

March 

2.7 %

April 

2.7 %

May 

2.8 %

June 

2.7 %

July 

2.3 %

August 

2.0 %

September 

1.7 %

October 

1.6 %

November 

1.7 %

December 

1.5 %

January 2024

1.6 %

February 

1.8 %

March 

1.6 %

April

1.6 %

May

1.6 %

The higher consumer price index (CPI) was mainly driven by an 8.7% year-on-year (YoY) rise in the housing, water, electricity, gas and other fuel prices.

Actual housing rents increased by 10.5% YoY in May on a 14.3% rise in apartment rents. The rise in this section significantly impacted the annual inflation pacein May, given its weight in the index. 

Food and beverage section appreciated by 1.4% YoY as vegetable prices grew by 6.9%. The restaurants & hotels section rose 2.5% YoY as the prices of catering services increased by 1.9%.

On the other hand, furnishing, household equipment and maintenance declined by 3.8% YoY in May, hurt by a drop of 5.8% in the prices of furniture, carpets and flooring. The clothing and footwear section dropped by 4% YoY in the same month, as shown in the following table:

The Cost-of-Living Index YoY

Main Groups

Change

Housing, Water, Electricity, Gas & Other Fuels

+8.7%

Restaurants & Hotels

+2.5%

Education

+1.1%

Food & Beverages

+1.4%

Personal Goods & Services

(0.7%)

Healthcare

(1.1%)

Tobacco

(1.1%)

Recreation & Culture

(2.1%)

Transport

(2.4%)

Communications

(1.9%)

Furnishing, Household Equipment & Maintenance

(3.8%)

Clothing & Footwear

(4.0%)

The 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.

Inflation in Riyadh, Hail and Arar rose on a monthly basis in May, but eased in Madinah, Abha, Buraydah and Najran.

Makkah, Dammam, Taif, Hufuf, Tabuk, Jizan and Al Baha reported a deflation for the same month.

The table below shows the inflation rate in Saudi cities during May 2024:

Inflation by City

City

April 2024

May 2024

Riyadh

3.6 %

3.8%

Makkah

(2.3%)

(2.1%)

Jeddah

—

—

Dammam

—

(.04%)

Madinah

1.8 %

1.5%

Taif

0.1 %

(0.3%)

Al Hofuf

0.1 %

(1.7%)

Abha

2.0 %

1.7%

Buraydah

14.3 %

14.2%

Tabuk

(1.2%)

(1.1%)

Hail

0.8 %

1.1%

Jizan

(1.5%)

(1.4%)

Najran

0.3 %

0.2%

Al Baha

(2.0%)

(1.2%)

Sakaka

0.4 %

0.4%

Arar

0.7 %

0.8%

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