RIYADH: Saudi Arabia’s inflation rate edged up 0.2 percent in May from the previous month, driven by changes in housing prices, official data showed.
According to the General Statistics Authority report, spending on housing, water, electricity, gas and other fuels increased by 0.4 percent month-on-month in May.
The monthly inflation index was also influenced by spending on food and beverages, which increased by 0.7% in May compared to April.
Additionally, spending on restaurants and hotels increased 0.2%, while costs for personal goods and services increased 0.1% month-over-month in May.
On the other hand, prices of clothing and footwear fell by 0.6% in May compared to the previous month, while transport costs fell by 0.4%.
The report also highlights that prices of education, furniture and household equipment, as well as tobacco products did not show significant change in May compared to April.
Increase in annual inflation
On an annual basis, Saudi Arabia’s consumer price index increased by 1.6% in May compared to the same period last year.
GASTAT attributed this increase to a 10.5% increase in real housing rents, influenced by a 14.3% increase in apartment rents.
“This increase had a significant impact on maintaining the annual inflation rate for May 2024, due to the substantial weight of this category at 21%,” the authority said in the report.
Similarly, food and beverage costs increased by 1.4%, driven by a 6.9% increase in vegetable prices.
On the other hand, the prices of furniture and household equipment decreased by 3.8%.
Similarly, spending on clothing and footwear fell 4% year-over-year in May, while transportation costs also fell 2.4% over the same period.
In May, a report published by Riyad Capital found that the inflation rate in Saudi Arabia is expected to average around 2% in 2024, with a moderate acceleration to 2.4% in 2025.
Riyad Capital’s analysis also adds that the Kingdom’s non-oil sector is expected to grow at a rate of 4.8% in 2024, thanks to a growth-oriented tax policy.
The report further states that non-oil activities in Saudi Arabia will further accelerate in 2025, with an expected expansion rate of 5.2%.
Last year, the International Monetary Fund stressed that the likelihood of a rise in headline and core inflation in oil-exporting countries like Saudi Arabia was low.
“Overall and core inflation in many oil-exporting countries such as Bahrain, Iraq, Kuwait, Oman, Qatar and Saudi Arabia remain relatively lower than elsewhere,” the IMF said.
Increase in the wholesale price index
In another report, GASTAT revealed that Saudi Arabia’s wholesale price index increased by 3.2 percent in May compared to the same month of the previous year.
The increase was mainly due to a 14.5% rise in the prices of basic chemicals and a 12% increase in the costs of refined petroleum products, the authority added.
Similarly, prices of food, beverages, tobacco and textiles rose 1.8% year-on-year in May, driven by a 7.4% increase in leather and textile prices. shoes.
On the other hand, ore and mineral costs decreased by 2.8%, mainly due to a 2.8% drop in stone and sand prices.
In addition, expenditures on agricultural and fishing products saw a decline of 1.3% in May, year-on-year, due to a 2.8% decrease in the prices of fish and other products of the fishing and a 2.7% drop in the prices of live animals and products of animal origin.
In addition, the prices of metal products, machinery and equipment decreased by 0.4% in May compared to the same month of the previous year, due to a 6.6% drop in the prices of equipment and radio, television and communication devices.
Compared to April, the Kingdom’s MPI decreased by 0.1% in May, driven by a 0.3% drop in the prices of food, beverages, tobacco and textiles.
This drop results from a 1.7% decrease in the prices of meat, fish, fruits, vegetables, oils and fats, and a 0.4% decrease in the prices of leather products and shoes.
Likewise, the costs of agricultural and fishing products also decreased by 0.2% month-on-month, thanks to a 1.6% drop in the prices of live animals and fish products. animal origin.
Compared to April, prices of other transportable goods fell by 0.1% in May, thanks to a 0.7% drop in the costs of basic chemicals.
On the other hand, the costs of metal products, machinery and equipment increased by 0.1%, due to a 1.1% increase in the prices of electrical machinery and appliances.
Increase in average prices
In another report, GASTAT revealed that prices of Egyptian Abou Sorra oranges increased by 22.70% in May compared to the previous month.
Likewise, the prices of local tomatoes and Turkish plums increased by 12.80% and 10.33%, respectively, in May compared to April.
Additionally, Indian pomegranates and Pakistani mandarins also saw notable increases, by 10.15% and 9.71%, respectively.
On the other hand, hotel room prices in Saudi Arabia saw a decline of 13.94% month-on-month.
Likewise, the costs of local melons, Lebanese peaches and imported onions fell by 13.30%, 11.37% and 9.34%, respectively.
This text is the translation of an article published on Arabnews.com
