Saudi Arabia Inflation For November Increased

 Saudi Arabia Inflation For November Increased

Saudi Arabia's Inflation For November Was 1.7%

The latest government data shows that the annual rate of inflation in Saudi Arabia was 1.7%. Overall, the inflation increased from 1.6% in November to 1.7% in December, which is a change of +0.1%.

The major reason behind the uptick in inflation in Saudi Arabia was an increase in house rents. Although inflation has increased a little bit, it is still lower when compared with other big economies around the world.

House Rents Up By 9.4%

Speaking of house rent, it jumped 9.4% during November, while apartment prices jumped by almost 12.8%. Similarly, the costs associated with gas, water, & other utilities also jumped by 1.3%, which also contributed to the higher inflation.

The costs of food items and beverages increased at a rate of 1.4%, while the prices of eggs/milk products jumped by 4.2%. In 2022, the high inflation in Saudi Arabia was mainly driven by higher food prices.

Another significant reason for high inflation was a 2.3% increase in the prices associated with hotels & restaurants. Since Saudi Arabia has a higher demand for services associated with hotels and apartments, it also contributed to inflation.

Although the inflation has inched a little higher, it is still very low when compared to other big economies like the USA, UK, Germany, & so on. When compared with the last few months, the inflation situation in Saudi Arabia shows continued improvement.

According to Saudi Arabia's government forecast, the inflation in 2023 will be around 2.6%. In the year 2024, the inflation will go even lower and touch a low reading of 2.2%.

One of the major reasons why inflation is so low in Saudi Arabia is due to the subsidy on oil products such as petrol. The latest available data suggests that Saudi Arabia is spending close to $7K/person as a subsidy on oil products.

This enables Saudi Arabian citizens to use oil and energy products at a much lower rate than the rest of the world.

Trending Stories