In March, inflation in Saudi Arabia slowed down to its lowest level since 2021, hitting 1.6% annually compared to 1.8% in February.
This drop was mainly due to a slowdown in food and beverage price increases. However, housing rents continued to climb, reaching 10.5%.
In June 2021, inflation peaked at 6.16%, according to data from Saudi Arabia’s General Authority for Statistics (GASTAT).
Among the G20 nations, Saudi Arabia ranks third lowest in inflation rates, trailing behind Switzerland and Italy.
According to the World Bank’s latest report for the Middle East and North Africa, Saudi Arabia and Kuwait have managed to keep inflation in check through strict monetary policies and support for food and energy prices.
Recent data from GASTAT shows that housing and utility prices went up by 8.8%, while food and drink prices rose by 0.9%. However, transportation costs fell by 1.8%, and prices for miscellaneous goods and personal services increased by 1.1%.
Experts speaking to Asharq Al-Awsat say the Saudi government’s measures have kept inflation lower compared to global economies.
Mohammed Bin Duleim Al-Qahtani, an economist at King Faisal University, pointed out that housing, rent, dining out, and electricity prices still affect inflation.
He believes the economy will grow, preventing major economic downturns over the next couple of years. Al-Qahtani also expected inflation to drop significantly by 2028.
Nasser Al-Quraowi, head of the Saudi Center for Studies and Research, said Saudi Arabia ranks among the top five countries in stable inflation despite global crises.
He emphasized the state’s role in protecting citizens and residents’ living standards, which will remain a priority for inflation control in the future.
