Saudi Gazette report

RIYADH — Saudi Arabia's Consumer Price Index or inflation rate recorded two percent during the month of January 2025, a slight rise from the previous month of December when it posted 1.9 percent. Saudi Arabia has the lowest inflation rates among the G20 countries.

According to the data released on Sunday by the General Authority for Statistics (GASTAT), the rise in inflation is driven mainly by an increase in the prices of housing, water, electricity, gas and fuels section by 8 percent. The prices of the food and beverages section rose by 0.8 percent while the prices of the miscellaneous personal goods and services section by 3.3 percent, compared to a decrease in the prices of the transportation section by 1.9 percent.

According to the GASTAT data, the eight percent increase in the housing, water, electricity, gas and fuels section was affected by the increase in the group of rents paid for housing by 9.7 percent and increase in villa rental prices by 7.7 percent during January 2025, and the increase in this section had a significant impact on the continuation of the annual inflation rate for December 2024 due to the weight that this section constitutes, which amounts to 25.5 percent.

In the same context, the prices of the food and beverages section rose by 0.8 percent, driven by a 5.6 percent increase in vegetable prices, while the prices of the miscellaneous personal goods and services section rose by 3.3 percent, affected by a 21.6 percent increase in the prices of jewelry, watches and valuable antiques. The prices of the restaurants and hotels section rose by 0.8 percent, driven by a 3.1 percent increase in the prices of hotel services and furnished apartments, while the education section recorded a 0.6 percent increase, affected by a 0.6 percent rise in the prices of tuition fees for pre-primary and primary education.

On the other hand, the prices of the home furnishings and equipment section recorded a decrease of 2.4 percent, affected by a four percent decrease in the prices of furniture, carpets and floor coverings, while the prices of the clothing and footwear section decreased by 1.5 percent, affected by a 3.3 percent decrease in the prices of ready-made clothes. The prices of the transportation section recorded a 1.9 percent decrease, affected by a 2.8 percent decrease in the prices of vehicle purchases.

On a monthly basis, the Consumer Price Index recorded a relative increase in January 2025 compared to December 2024, as it increased by 0.3 percent, as the housing, water, electricity, gas and fuels section increased by 0.3 percent, driven by a 0.3 percent increase in actual housing rental prices.

It is noteworthy that the Consumer Price Index (CPI) reflects changes in the prices paid by consumers for a fixed basket of goods and services consisting of 490 items. This basket was selected based on the results of the Household Expenditure and Income Survey conducted in 2018. The relevant prices are collected through field visits to points of sale, and the CPI statistics in the Kingdom are published on a monthly basis.