Saudi Arabia's Inflation Rate Rises in October

ABU DHABI (Reuters) – Saudi Arabia's annual inflation rate edged up to 1.9% in October from 1.7% in September, as reported by government data on Thursday, primarily driven by an increase in housing rents.

Housing Rents Increase

Rents for housing rose by 11.6% in October, with apartment rents surging 11.3%. The General Authority for Statistics noted that this increase pushed the combined prices in the Housing, Water, Electricity, Gas, and Other Fuels category up by 9.6%, making it a significant contributor to the overall inflation measurement.

Other Price Changes

Rental price hikes, particularly in major cities like Riyadh, have been a key factor influencing inflation throughout the year. Meanwhile, the food and beverage category prices saw a rise of 0.1% in October. Prices for personal goods increased by 2.3%, with jewellery and watch prices climbing by nearly 25%.

Additionally, prices in the restaurants and hotels category also experienced an increase. Month-on-month, prices went up by 0.3% in October, although transportation costs continued to decline.

Inflation Outlook

Despite remaining relatively low compared to global inflation levels, Saudi inflation has been gradually rising since July. The International Monetary Fund anticipates Saudi inflation to stabilize around 2% in the medium term.

Note: This story has been corrected to reflect the food and beverages category increase of 0.1%, instead of just under 1%.