Annual inflation rate in Saudi Arabia hit 1.1 percent in November, up from 0.8 percent in the previous month, according to Gastat.
This is the highest level since June and the third month in a row in which inflation rate rose, yet it remains within analysts’ expectations.
Specifically, November's inflation rate came in line with Capital Economics' forecasts. Last month, the London-based firm expected consumer prices to edge higher in the coming period but that they will remain relatively weak in the range of 1-2 percent in 2022 and 2023.
The company also added that the Kingdom will not experience strong inflationary pressures seen elsewhere in the emerging world
The jump in consumer prices was driven by higher transport costs, which increased 5.7 percent in November compared to the same month last year.
Other key points from Gastat's report:
- Transportation makes up 13 percent of the overall index.
- Gastat said soaring fuel prices, rising 47.9 percent, fuelled the inflationary pressures in the sector.
- In addition, food prices played a major role in the hike prices, climbing 1.7 percent with vegetable prices surging 7 percent.
- Education prices also went up by 4.8 percent while prices of restaurants and hotels were 1.8 percent higher when compared to last year, which was due to a rise in catering services prices.
- Prices of clothing and footwear were 1.8 percent cheaper in November compared to a year earlier.
- Prices of utilities such as housing, water, electricity, gas and other fuels also experienced a 1.6 percent decline. Actual rentals for housing dropped by 2 percent.
- On a monthly basis, consumer prices edged up 0.2 percent in November.
- Prices of utilities were unchanged while transport prices slightly increased by 0.3 percent.
- Costs of personal goods and services went up by a monthly 1.4 percent, the highest month-on-month rise among other groups.
