Dubai, UAE — Saudi Arabia’s inflation increased by 2.8%, compared to May 2022, slightly higher than April 2023 (2.7 percent), the kingdom’s General Authority for Statistics (GASTAT) said Thursday.
The main driver of Consumer Price Index inflation in May was the higher prices of housing, water, electricity, gas, and other fuels by 8.4 percent, and food and beverages by 0.9 percent.
The cost-of-living index for May rose to 109.37 points, according to the base year 2018, from 106.42 points in the same month a year earlier.
Inflation is measured by the change percentage in the cost of living between the current period and the corresponding period of the previous year. The increase or decline of inflation is measured compared to the previous month.
GASTAT said actual rents for housing increased by 9.9 percent in May 2023, reflecting the increase in rents for apartments by 23.7 percent. 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).
Food and beverages prices increased by 0.9 percent, in particular meat and poultry prices (+2.4 percent), Milk, milk products and eggs (+8.5 percent). Transport prices increased by 1.6 percent, mainly due to the increase in purchase of motor cars prices by 1.2 percent.
Restaurants and hotels prices increased by 5.0 percent, due to the increase in catering services prices by 5.2 percent. Education prices increased by 3.0 percent, mainly resulting from the increase in pre-primary and primary education fees by 4.5 percent. Recreation & culture prices increased by 3.8 percent, mainly resulting from the increase in package holidays by 14.1 percent.
In contrast, furnishings, household equipment & maintenance prices decreased by 2.0 percent, due to the decrease in furniture and furnishings, carpets and other floor coverings (-4.9 percent). Clothing and footwear prices decreased by 2.2 percent, due to the decrease in garments prices (-3.3 percent).