Saudi Arabia’s inflation steady at 2 percent in February, among lowest in G20

Saudi Arabia's annual inflation rate for February 2025 remained stable at 2%, the same rate as the previous year. According to the Saudi Press Agency, this inflation rate highlights Saudi Arabia's position as having one of the lowest inflation rates among the Group of Twenty (G20) countries. This stability reflects prudent fiscal policies and effective supply chain management within the Kingdom.

The Consumer Price Index (CPI) measures the change in prices paid by consumers for a fixed basket of 490 goods and services. This basket was selected based on the results of the 2018 household income and expenditure survey. The relevant prices are collected through field visits to points of sale. Saudi Arabia releases CPI statistics on a monthly basis, providing timely insights into the Kingdom's economic performance and consumer spending patterns.

The Saudi Arabian stock market has continued its upward trend following an upgrade by S&P Ratings. The global rating agency Standard & Poor's has raised Saudi Arabia's long-term sovereign credit rating from "A" to "A+", citing the country's ongoing social and economic transformation in line with the "Vision 2030" plan. The Saudi benchmark index closed up 1.1%, driven by a 4.4% rise in Saudi Arabian Mining Company and a 0.6% increase in Al Rajhi Bank. This rating upgrade is underpinned by enhanced governance effectiveness and institutional frameworks, including the deepening of domestic capital markets, signaling increased investor confidence.

In early March of this year, the Saudi Arabian Cabinet approved the establishment of the Investment Marketing Authority, marking a significant step in the country's efforts to attract more foreign direct investment and diversify its economy away from its reliance on oil. The Saudi Investment Marketing Authority will contribute to the diversification of the country's economy and enhance its competitiveness on the global stage. Its launch is also in line with the objectives of the National Investment Strategy, further solidifying the Kingdom's commitment to economic transformation.

Last week, Saudi Arabia was recognized by UN-Water as a global leading example in achieving the implementation index (6.5.1) of integrated water resources management under Sustainable Development Goal 6 (SDG 6), showcasing the significant progress Saudi Arabia has made in this critical area. This recognition underscores the Kingdom's commitment to sustainable water management practices and its leadership in addressing water-related challenges on a global scale.