RIYADH: Saudi Arabia’s annual inflation rate climbed to 1.5 percent in July compared to the same period last year, driven largely by a surge in housing costs, official data showed. 

According to data from the General Authority for Statistics, the 9.3 percent increase in the prices of housing, water, electricity, gas, and other fuels was the primary contributor to the inflation rate.  

This category, which represents a significant portion of the consumer price index, played a crucial role in maintaining the overall inflation level. 

The authority further noted that food and beverage prices also saw a modest rise of 0.4 percent year on year in July, while transportation costs declined by 3.5 percent during the same period. 

This comes against the backdrop of Saudi Arabia’s resilient economy, which maintained an average annual inflation rate of 1.6 percent despite global economic challenges, as noted during a May meeting of the Council of Economic and Development Affairs. 

The Kingdom’s inflation rate continues to be one of the lowest in the region, reflecting the government’s proactive efforts to stabilize the economy and mitigate the impact of global price fluctuations. 

The GASTAT report further noted that housing costs, particularly actual rents, surged by 11.1 percent year on year in July, driven by a 12 percent increase in apartment rental prices. 

“The increase in this (housing) category had a significant impact on maintaining the annual inflation rate for July 2024, given the weight this group represents at 21 percent,” said GASTAT in the report.  

Additionally, the cost of dining out and hotel stays rose by 2.3 percent year on year, fueled by a 7 percent increase in accommodation service prices, the authority said.