Saudi inflation ticks higher in May to 2.8%, driven by rents
DUBAI: Saudi Arabia's inflation rate was 2.8% in May, slightly higher than 2.7% the previous month, driven by housing costs, government date released on Thursday showed.
Higher prices of housing, water, electricity, gas, and other fuels rose by 8.4% in May, year-on-year, while the food and beverage sector - the leading driver for inflation during much of 2022 - rose by 0.9%, the General Authority for Statistics data showed.
"Prices for rents were the main driver of the inflation rate in May 2023 due to their high relative importance in the Saudi consumer basket (with a weight of 21.0%)," a statement said.
Actual rents for housing rose by 9.9% in May, with rents for apartments rising by 23.7%. Prices for restaurants and hotels increased by 5% and for recreation and culture by 3.8%.
Consumer prices increased by 0.2% month on month.
Inflation in Saudi Arabia has been on a downward trend this year, from 3.4% in January.
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