Transportation prices raise annual inflation in Saudi to 1.2%

Saudi Arabia projects an inflation rate of 1.3% for 2022, reaching 2% in both 2023 and 2024. Data released today by the Saudi General Authority for Statistics shows that the Consumer Price Index, commonly referred to as the inflation rate, rose by 1.2% year-on-year in January 2022.

This increase was primarily driven by rising prices in transportation, food, and beverages. Compared to December 2021, the inflation rate increased by 0.2%. The Kingdom of Saudi Arabia anticipates an inflation rate of 1.3% for 2022, which is expected to remain at 2% in 2023 and 2024.

The global economy is facing increasingly severe inflationary pressures, hindering the achievement of sustainable economic growth. The Saudi General Authority for Statistics noted in a report that the primary drivers of this inflation increase were a 4.9% rise in transportation prices and a 2% increase in food and beverage prices.

The report also highlighted that the transportation sector was most significantly impacted by a 34.5% increase in gasoline prices, which, due to its weighting in the index, had a notable effect on the annual inflation rate. The food and beverage sector was also affected by a 2.3% rise in food prices, with vegetable prices alone increasing by 10%.

The furniture and household goods sector experienced an inflation rate of 1.2%, driven by a 1.9% increase in the prices of furniture, carpets, and floor coverings. The education sector saw a 6.3% inflation rate, mainly due to a 15.3% increase in prices for secondary and higher education. The agency stated that the Consumer Price Index for January was relatively stable compared to December 2021, rising by only 0.2%.

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