Inflation in Saudi Arabia hits 1.2% in January

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Saudi Arabia’s inflation grew to 1.2% in January, according to recent data by the General Authority for Statistics (GASTAT).

The cost-of-living index for January rose to 105.22 points, according to the base year 2018, compared to 104 points the year before.

The increase in consumer price index (CPI) was mainly driven by a 4.9% year-on-year (YoY) rise in the average prices of transport and a 2% increase in the average prices of food and beverage.

The rise in the transport sector was attributed to a 34.5% rise in fuel prices, which had a significant impact on the increase in annual inflation due to the sector’s weight in the index.

Education sector rose by 6.3%, impacted by 15.3% growth in intermediate and secondary education prices.

Restaurants and hotels increased by 2.1%, affected by a 1.8% rise in the services prices.

Meanwhile, the housing, water, electricity, gas and other fuels sector declined by 1.3%, due to a 1.7% fall in housing rents. Clothing and footwear sector retreated by 1.8% on 1.3% lower clothing prices.

The table below illustrates the change in the CPI comparison YoY in January:

The CPI reflects price changes of a fixed basket of goods and services that includes 490 items. The items were chosen based on the results of the Household Expenditure and Income Survey conducted in 2018.

Prices are collected through point of sale (POS) field visits.

Details and Historical Data of Inflation