Monitoring Desk
RIYADH: Saudi Arabia’s inflation rate increased 0.2 percentage points month-on-month (MoM) in January 2023 in a sign the Kingdom is getting to grips with the price hikes sweeping the globe, according to data released by the General Authority for Statistics.
In January 2022, inflation was 3.4 percent higher compared to January 2022, primarily driven by the increasing costs of housing, electricity, water, gas, and other fuels, which rose by 6.6 percent.
Prices of food and beverages rose by 4.2 percent.
Saudi Arabia’s annual inflation rate in January 2023 is the highest since June 2021, when it hit 6.6 percent.
“Housing prices were the key driver of the inflation rate in January 2023 due to their high relative significance in the Saudi consumer basket with 25.5 percent,” said GASTAT in the report.
Furthermore, the GASTAT data indicates that the monthly consumer price index was affected by a 0.8 percent hike in the prices associated with housing, electricity, water, gas, and other fuels.
This comes as actual rentals for housing during the same duration witnessed a 1 percent increase, the GASTAT report highlighted.
Wholesale prices in the Kingdom increased by 3.6 percent in January 2023, compared to January 2022, the GASTAT report stated.
Inflation mainly attributed to increase in prices of various items
The increase in January 2023 is mainly attributed to the increase in prices of food products, beverages, textiles, and tobacco by 7.6 percent.
The data disclosed that the hike in prices of food products, beverages, tobacco, and textiles is associated with the fact that dairy products alone climbed as much as 20 percent.
Compared to December 2022, wholesale prices in the Kingdom increased by 0.7 percent due to an increase in food products, beverages, tobacco, and textiles, which saw a rise of 1.7 percent. During the same period, the price of dairy products jumped 10 percent as well.
“In January 2023, the Wholesale Price Index increased by 3.6 percent compared to the same month in 2022, higher than in December 2022 (3 percent), but clearly below last year’s average,” said GASTAT in the report.
