Saudi inflation in November rises slightly to 1.7%

RIYADH (Reuters) – Saudi Arabia’s annual inflation rate rose to 1.7% in November from 1.6% the previous month, government data showed on Thursday, with rising housing rents the main driver once again.

Rents increased by 9.4% in November as prices for apartments rose by 12.8%. The higher rents drove an increase in the pricing of housing, water, gas, electricity, and other fuels by 1.3%, the General Authority for Statistics reported.

Prices for food and beverages, which were the main driver of inflationary pressures for much of 2022, increased by 1.4% driven by a 4.2% rise in the price of milk products and eggs.

Hotel and restaurant prices rose by 2.3% due to an increased demand for hotel and furnished apartment services.

Despite the slight rise, inflation has remained relatively low in Saudi Arabia this year compared to global inflation levels, and prior to this month had been steadily easing since May.

The government has forecast inflation at 2.6% for 2023 and at 2.2% for 2024.

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