Summary: Prices of personal care, social protection, and miscellaneous goods and services decreased by 0.1 percent. Similarly, prices of restaurants and accommodation services decreased by 0.1 percent, and information and communication sector decreased by 0.1 percent.

Data from the General Authority for Statistics in Saudi Arabia showed on Wednesday that the consumer price index (inflation rate) in the country rose on an annual basis by 1.8 percent in June, stabilizing at the same levels recorded in the previous month.

The authority attributed this rise mainly to an increase in prices of housing, water, electricity, gas, and other fuels by 3.5 percent, food and beverage prices by 1.4 percent, and transport prices by 1.7 percent.

Monthly change in consumer prices

On a monthly basis, the consumer price index rose in June by 0.2 percent compared to May.

This came as a result of an increase in food and beverage prices by 0.7 percent, driven by higher vegetable prices. Similarly, prices of housing, water, electricity, gas, and other fuels rose by 0.4 percent, and transport by 0.1 percent.

In contrast, prices of personal care, social protection, and miscellaneous goods and services decreased by 0.1 percent. Similarly, prices of restaurants and accommodation services fell by 0.1 percent, and information and communication sector decreased by 0.1 percent.

Consumer prices by sector

By sector, prices of personal care, social protection, and miscellaneous goods and services rose by 3.8 percent, influenced by an increase in prices of jewelry, watches, and precious antiques by 13.6 percent.

Housing sector prices were affected by a 4.7 percent rise in housing rents, which had a major impact on the increase in actual housing rents group by 4.4 percent.

Similarly, prices of recreation and culture sector rose by 2.5 percent, driven by a 4.2 percent increase in recreation and culture services prices.

In contrast, prices of furniture, home equipment, and routine home maintenance decreased by 0.6 percent, as did prices of clothing and footwear by the same percentage.

Contribution of sectors to the annual inflation rate

The housing, water, electricity, gas, and other fuels sector contributed the largest share to the annual inflation rate, recording a contribution of 0.7 percentage points, followed by personal care, social protection, and miscellaneous goods and services with a contribution of 0.3 percentage points, then transport with a contribution of 0.2 percentage points, and food and beverages with a contribution of 0.2 percentage points, while the remaining sectors together contributed about 0.3 percentage points.

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The Consumer Price Index (CPI) reflects changes in prices paid by consumers for a basket of goods and services, which includes 528 items selected according to the results of the 2023 Household Income and Expenditure Survey. The weights of these items are determined based on their relative importance in household spending, and prices are collected through field visits, points of sale, and various data sources, following an approved international methodology to ensure the quality and accuracy of the index.

Saudi Arabia continues to implement Vision 2030 aimed at diversifying the economy away from oil, alongside reducing the budget deficit and an increasing focus on raising spending efficiency after years of expansion. The vision represents a long-term strategic framework targeting the enhancement of the private sector's role, increasing productivity, stimulating investment, and building a more sustainable and competitive development model, supporting balanced growth and economic stability in the long term.

International Monetary Fund estimates indicate that the Saudi economy will grow by 3.1 percent in 2026, accelerating to 4.5 percent in 2027, reflecting continued economic recovery and expansion of non-oil activities.