Official data revealed that Saudi Arabia experienced a decline in inflation to 1.5 percent in December 2023, compared to 1.7 percent in the previous month.
The General Authority for Statistics (GASTAT) reported that this month-on-month decrease was primarily due to a 0.3 percent drop in the prices of food and beverages.
Read more: Annual inflation in Saudi slows to 3 percent in October
In December, transport prices decreased by 0.4 percent, while expenses for clothing and footwear dipped by 0.3 percent compared to November. However, education and tobacco prices remained relatively stable during the same period.
On the other hand, housing, water, electricity, gas, and other fuels experienced a 0.7 percent increase in prices, and expenses for restaurants and hotels rose by 0.4 percent.
Rents played a significant role in the annual inflation rate for December, surging by 9 percent. Given their substantial weight of 21 percent in the Saudi consumer basket, this had a notable impact on the headline figure.
Comparing December 2023 to the same month in the previous year, food and beverage prices increased by 1.2 percent, while expenses for restaurants and hotels surged by 2.5 percent.
Similarly, prices for recreation and culture rose by 1 percent. In contrast, expenses for furnishings, household equipment, and maintenance decreased by 3.2 percent year-on-year during the same period.
#GASTAT publishes the Wholesale Price Index, December 2023.
— الهيئة العامة للإحصاء (@Stats_Saudi) January 15, 2024
Drivers of WPI growth
Additionally, GASTAT reported that the Wholesale Price Index (WPI) in Saudi Arabia increased by 3 percent in December 2023 compared to the same period in the previous year. This rise in the WPI was mainly driven by higher prices of basic chemicals and dairy products, which experienced increases of 30.9 percent and 41.3 percent, respectively. Furthermore, the WPI in the last month of 2023 increased by 0.4 percent compared to November, primarily due to a 0.8 percent increase in the prices of other transportable goods.
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