Riyadh, Saudi Arabia — Saudi Arabia’s annual inflation rate in Jan 2025 reached 2 percent compared to January 2024, the kingdom’s General Authority for Statistics (GASTAT) said in its Consumer Price Index (CPI) report for January 2025.
According to GASTAT, Saudi Arabia’s inflation rate is considered the lowest among the G20 countries.
CPI measures the prices paid by consumers for a fixed basket of goods and services consisting of 490 items.
The basket was selected based on the 2018 household income and expenditure survey. Concerned prices have been collected through points of sale field visits. CPI statistics are released monthly.
Rental prices main driver of inflation in January 2025 compared to January 2024. The housing, water, electricity, gas, and other fuels section increased by 8.0 percent, mainly driven by a 9.7 percent rise in rents paid for housing in January 2025, attributed to a 7.7 percent increase in villa rental prices.
This increase significantly impacted the continuation of the annual inflation rate for January 2025, due to the section’s weight, which amounted to 25.5 percent. Food and beverage prices increased by 0.8 percent, driven by a 5.6 percent increase in vegetable prices.
Similarly, personal goods and services prices increased by 3.3 percent, influenced by a 21.6 percent rise in the prices of jewelry, watches, and precious antiques. The restaurants and hotels section also rose by 0.8 percent, driven by a 3.1 percent rise in hotel and furnished apartment service prices.
Meanwhile, the education section witnessed a 0.6 percent increase, primarily due to a 0.6 percent rise in pre-primary and primary education costs. On the other hand, furnishing and home equipment prices decreased by 2.4 percent, influenced by a 4.0 percent decline in furniture, carpets, and flooring prices. Similarly, clothing and footwear prices decreased by 1.5 percent, due to a 3.3 percent drop in ready-made clothing prices. Transportation prices also decreased by 1.9 percent, affected by a 2.8 percent decrease in vehicle purchase prices