Inflation in Saudi Arabia remains at 1.6% in May – Business and finance

CAIRO/RIYADH: Saudi Arabia’s annual inflation rate remained at 1.6% for a third consecutive month in May, government data showed on Sunday, with higher apartment rents remaining the main driver of the increase.

According to the Central Statistical Office, apartment rents increased by 10.5% compared to the previous year, which was due to a 14.3% increase in apartment rents.

In total, prices in the subcategory of apartments, water, electricity, gas and other fuels increased by 8.7% compared to the previous year.

Food and beverage prices increased year-on-year by 1.4%, while hotel and restaurant prices increased by 2.5%, driven by a 1.9% increase in the prices of catering services.

Inflation in Saudi Arabia did not change in April and amounted to 1.6%.

Clothing and footwear prices dropped by 4% compared to the previous year, and vehicle purchase prices dropped by 4.1%, reducing total transportation costs by 2.4%.

On a monthly basis, prices in May increased by 0.2% compared to April.

Since the beginning of the year, inflation in Saudi Arabia has remained relatively low compared to global levels, with government policies helping to limit the impact of international price increases.