Saudi Arabia's inflation rate inches up to 1.6% in August

Saudi Arabia's annual inflation rate inched up to 1.6% in August, from 1.5% in July, government data showed on Sunday, driven by an increase in housing rents and food prices.

Housing rents rose by 10.7% in August, weighing on the overall rise in prices of housing, water, electricity, gas, and other fuels by 8.9%, according to the General Authority for Statistics.

The inflation rate had held steady at 1.5% in June and July, underpinned mostly by apartment rents.

In August data showed that food and beverage prices rose 0.9%, a bigger increase than in recent months, driven by a 4.6% rise in vegetable prices.

Prices in the restaurants and hotels category, as well as the education sector, also rose, while prices in the transport sub-category fell by 3.4% and those in the furnishing and home equipment sector declined 3.5%.

On a month-on-month basis, prices increased 0.1% in August.

Inflation has remained relatively low in Saudi Arabia this year compared with global levels.

In its latest country report, the International Monetary Fund forecast Saudi inflation will average 1.9% in 2024 and 2% in 2025.