Riyadh, Saudi Arabia – Saudi Arabia’s annual inflation rate dropped to 2.7 percent in March from 3 percent in February, as per government data.
The decrease was mainly driven by a rise in housing rents. Housing, water, electricity, gas, and other fuels rose by 7.4 percent from the previous year, with overall rents for housing increasing by 8.7 percent.
This rise in rents, which has a high weighting of 21 percent in the Saudi consumer basket, was the biggest driver of inflation. Food and beverage prices went up by 2.3 percent while restaurant and hotel prices increased by 6.3 percent.
However, consumer prices rose by 0.1 percent compared to February, with housing, water, electricity, gas, and other fuels prices up by 0.4 percent.
Experts predict a decelerating trend in inflation in Saudi Arabia over the coming months due to easing global supply-side costs, the impact of higher interest rates on consumer demand, and a strong base from the second half of 2022.