Saudi Arabia inflation ticks higher in May to 2.8 percent, driven by rents

Published: Updated:
Read Mode
100% Font Size
1 min read

Saudi Arabia’s inflation rate was 2.8 percent in May, slightly higher than 2.7 percent the previous month, driven by housing costs, government data released on Thursday showed.

Higher prices of housing, water, electricity, gas, and other fuels rose by 8.4 percent in May, year-on-year, while the food and beverage sector - the leading driver for inflation during much of 2022 - rose by 0.9 percent, the General Authority for Statistics data showed.

For the latest headlines, follow our Google News channel online or via the app.

“Prices for rents were the main driver of the inflation rate in May 2023 due to their high relative importance in the Saudi consumer basket (with a weight of 21.0 percent),” a statement said.

Actual rents for housing rose by 9.9 percent in May, with rents for apartments rising by 23.7 percent. Prices for restaurants and hotels increased by 5 percent and for recreation and culture by 3.8 percent.

Consumer prices increased by 0.2 percent month on month.

Inflation in Saudi Arabia has been on a downward trend this year, from 3.4 percent in January.

Read more:

Google announces MENA Gaming Summit in 2023, training for Saudi Arabia gamers

Saudi Arabia prohibits working under the sun until September 15

Video: Riyadh Air CEO discusses airline’s focus on sustainability, technology