Saudi inflation hit a fresh 2024 high of 2.0% y-o-y in November

Inflation accelerated to 2% y-o-y in November, a slight uptick on October’s 1.9% reading as the gauge hit its highest level so far this year, according to figures from the General Authority for Statistics (Gastat) (pdf). On a monthly basis, prices inched up 0.3%, driven by an 0.9% increase in the combined housing, water, electricity, gas, and other fuels category. The story got ink from Reuters.

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IN CONTEXT- Inflation has been on an upward trajectory since August, largely driven by rising rental prices, following a two-month period where it held steady at 1.5% in June and July. Meanwhile, Moody’s predicts that Saudi inflation will settle at 1.6% this year, before accelerating to 1.9% in 2025 and 2% in 2026

The usual suspects: The price of home rentals — the heaviest-weighted component in the domestic consumer basket — rose 10.8% y-o-y last month, on the back of a 12.5% surge in apartment rental costs. This led to a 9.1% increase in the prices of housing, water, electricity, gas, and other fuels. Similarly, restaurant and hotel rates were up 1.5% during the period, driven by a 5.9% bump in hotel and furnished apartment fees.

Also feeling the pinch: The price of personal goods and service rose 2.7% y-o-y on the back of a 23.7% increase in the prices of jewelry, watches, and antiques. Education costs gained 1.1% y-o-y, led by a 1.8% rise in intermediate and secondary school fees, while food and beverage prices edged up 0.3% due to a 1.9% rise in meat and poultry.

Softening the blow: Furnishing and home appliance prices slipped 2.9% y-o-y, thanks to a 4.4% decrease in the prices of furniture, carpets, and flooring. At the same time, apparel and footwear prices shed 2.3% on the back of a 4.6% decline in ready-to-wear clothes while transportation costs eased 2.5%, driven by a 3.9% drop in car prices.

MEANWHILE- Producer prices rose 1.4% y-o-y in November, on the back of a 12% increase in the prices of refined petroleum products, according to Gastat’s wholesale price index (pdf). Meanwhile, November’s wholesale prices were up 0.2% m-o-m.

Dive deeper into Gastat’s full report on November’s average prices of goods and services here (pdf).