RIYADH: Saudi Arabia’s annual inflation rate edged up to 1.8 percent in March compared to the same month in the previous year, as housing rents continue to drive price gains, official data showed.
The latest report from the General Authority for Statistics stated: “This increase was mainly driven by a rise in housing, water, electricity, gas, and other fuel prices by 3.9 percent, transport prices by 0.9 percent and prices of restaurant and accommodation services by 2.2 percent.”
The figures showed that actual rents increased by 4.8 percent, underscoring continuous demand for residential properties in the Kingdom.
Saudi Arabia’s inflation outlook aligns with International Monetary Fund projections made in October, which see inflation at about 2 percent in 2026, broadly in line with the UAE, while Qatar is expected to record a slightly higher rate of 2.6 percent.
According to GASTAT, prices of personal care, social protection, and miscellaneous goods and services increased by 8.2 percent year on year in March, driven by a 27.3 percent rise in the prices of other personal products.
Prices for restaurants and accommodation services rose by 2.2 percent, while costs of insurance and financial services increased by 2.1 percent.
Food and beverage prices, an important factor for households in the Kingdom, recorded only a modest 0.3 percent year on year increase in March.
Conversely, the prices of furnishings, household equipment, and routine household maintenance decreased by 0.5 percent, affected by a decline in the prices of furniture, furnishings, and loose carpets by 2.3 percent.
The costs of clothing and footwear also decreased by 0.1 percent due to the decline in the prices of the clothing group by 0.2 percent.
On a monthly basis, Saudi Arabia’s CPI increased by 0.3 percent in March compared to the previous month, driven by a 0.5 percent rise in food and beverages and a 0.7 percent increase in the costs of personal care and miscellaneous goods.
The prices of the housing, water, electricity, gas and other fuels increased by 0.2 percent, while expenses for restaurants and accommodation services division witnessed a 0.6 percent increase.
Transport prices dipped by 0.2 percent in March compared to the previous month, while the prices of education, health, and tobacco services remained stable.
Wholesale Price Index
In a separate report, GASTAT said Saudi Arabia’s Wholesale Price Index recorded a year-on-year increase of 3.3 percent in March.
The rise was driven mainly by a 6.4 percent increase in prices of other transportable goods, excluding metal products, machinery, and equipment.
“The prices of metal products, machinery, and equipment rose by 1.2 percent driven by a 6.6 percent rise in the prices of basic metals and a 0.8 percent increase in the prices of transport equipment,” said GASTAT.
It added: “The prices of agriculture and fishery products increased by 1.8 percent as a result of the increase in the prices of products of agriculture by 1.7 percent and the prices of live animals and animal products by 2.7 percent.”
Conversely, the costs of ores and minerals decreased by 0.2 percent due to a 0.2 percent decline in the prices of stones and sand.
GASTAT added that the prices of food products, beverages, tobacco, and textiles remained stable, with no significant relative change during March.
On a monthly basis, the WPI increased 0.2 percent in March, driven by a 0.3 percent rise in prices of metal products, machinery and equipment.
The prices of other transportable goods, excluding metal products, machinery, and equipment, also increased by 0.4 percent compared to the previous month.
Average prices
In another report, GASTAT highlighted notable movements in average prices of goods and services across the Kingdom in March.
Local grapes recorded the largest month-on-month increase at 17.9 percent, followed by Philippines Banana, Alsharbatli at 17.3 percent, Medium African Lemon at 15.4 percent, and Indian Pomegranates at 14.6 percent.
Conversely, white cabbages saw the steepest monthly decline at 7.3 percent, followed by local onion at 3.3 percent and local cucumbers at 2.7 percent.
