Inflation in Saudi Arabia Continues to Decline, Easing to 2.3 Percent in July

Saudi Arabia’s annual rate of inflation last month eased to 2.3 percent, down from 2.7 percent in June, according to official data.

According to GASTAT, which produces and publishes the official data, housing, food and transport were among the drivers of a rise in consumer prices in July from a year earlier.

“Actual rents for housing increased by 10.3 per cent in July, reflecting the increase in rents for apartments by 21.1 per cent,” GASTAT said.

“Prices for rents were the main driver … due to their high relative importance in the Saudi consumer basket, with a weight of 21 percent,” GASTAT added.

Keeping inflation in check has been a key focus for Saudi Arabia’s economy as authorities invest in development at home. Saudi Arabia’s capital city Riyadh aims to double in size over the next seven years on the back of $1 trillion infrastructure projects across the Saudi capital.

Inflation in Saudi Arabia has been on the decline since January, when it hit 3.4 per cent.