DUBAI (Reuters) – Saudi Arabia’s annual inflation rate ticked as much as 3.3% in December from 2.9% in November, government data showed on Sunday, with price rises again driven mainly by housing costs.
Prices rose 0.3% month on month in December, compared with a 0.1% monthly rise in November, Saudi Arabia’s General Authority for Statistics said.
Housing, water, electricity, gas and other fuels, with a 25.5% weight of the buyer basket, rose 5.9% from a 12 months earlier and were 0.9% higher compared with November.
The statistics authority said the rise was “because of this of the rise in actual rentals for housing by 1.1%.”
Food and beverage prices, which were the fundamental driver of inflation during much of 2022, fell 0.1% on a monthly basis, though they were still up 4.2% in comparison with December 2021.
“The annual consumer price index for 2022 increased by 2.5% in comparison with 2021, mainly influenced by the rise in food and beverages prices by 3.7% and transport prices by 4.1%, as a consequence of their weight within the index,” the General Authority for Statistics said in a separate report.
The housing category rose 1.8% in 2022, “mainly resulting from the rise in actual rentals for housing by 2.0%,” the authority said.
The finance ministry, in its 2023 budget statement, had said it expected a median inflation rate of two.6% at the tip of 2022.
(Reporting by Yousef Saba; Editing by Susan Fenton)
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