The Consumer Price Index (CPI) in Saudi Arabia has witnessed a 2.8% increase in May 2023, surpassing the figures from the same period last year. This rise in inflation outpaced the estimated 2.7% increase recorded in April 2023, as reported by the General Authority for Statistics (GASTAT).
Among the factors contributing to the CPI increase were the surge in housing, water, electricity, gas, and other fuel prices by 8.4%, as well as a 0.9% rise in food and beverage prices.
Rent prices emerged as the primary driver of inflation, holding significant weight (21.0%) in the Saudi consumer basket, as revealed by GASTAT. Notably, the actual rents of housing in Saudi Arabia soared by 9.9%, with apartment rents surging by a staggering 23.7%.
Additionally, food and beverage prices experienced a 0.9% increase, driven by a 2.4% spike in meat and poultry prices and an 8.5% surge in milk, dairy, and egg prices.
The transportation sector witnessed a 1.6% price hike, largely influenced by a 1.2% increase in vehicle prices.
Meanwhile, restaurants and hotels observed a 5.0% uptick, primarily attributed to a 5.2% rise in catering service prices.
Education costs increased by 3.0%, with pre-primary and primary education fees witnessing a 4.5% surge.
The entertainment and culture sector saw a 3.8% increase, largely driven by a 14.1% rise in tourist trip prices (holiday packages).
However, some sectors experienced price decreases. Furnishings, household equipment, and maintenance fell by 2.0%, primarily due to a 4.9% decline in furniture and floor covering prices. Clothing and footwear prices also dropped by 2.2%, influenced by a 3.3% decrease in ready-made garment prices.
Compared to April 2023, May saw a slight overall price increase of 0.2%. Notably, this was driven by a 0.4% rise in housing, water, electricity, gas, and other fuel prices, which, in turn, were impacted by a 0.4% increase in actual rental prices.
GASTAT further highlighted a 0.1% increase in the food and beverage sector compared to April 2023, along with 0.5% increases in transportation, personal goods and services, recreation and culture, and healthcare.
Conversely, prices of furnishings, household equipment, and maintenance decreased by 0.1%, while communications, clothing and footwear, and restaurants and hotels experienced declines of 0.2%, 0.8%, and 0.3%, respectively.
Notably, the prices of education and tobacco did not witness any significant changes in May 2023, according to GASTAT.
