Arab News, Tue, Apr 16, 2024 | Shawwal 7, 1445
Saudi inflation eases to 1.6% thanks to food price changes: GASTAT
Saudi Arabia:
Saudi Arabia’s inflation eased to 1.6 percent in March, down from 1.8 percent
the previous month, driven by changes in the food and beverage sector.
The latest report from the General Authority for
Statistics indicates that the Kingdom’s Consumer Price Index experienced a
marginal decrease of 0.1 percent in March compared to February.
The monthly inflation index was impacted by a 0.7
percent decrease in the food and beverage sector, primarily due to a 0.6 percent
decline in meat and poultry prices.
Additionally, prices in transportation,
furnishing, and home equipment sectors experienced declines of 0.7 percent each.
Similarly, recreation and culture, communications, and tobacco also saw
decreases, with falls of 0.9 percent, 0.3 percent, and 0.1 percent,
respectively.
Conversely, prices rose in the housing, water,
electricity, gas, and other fuel category by 0.7 percent, as well as in the
personal goods and services category by 0.3 percent, and the clothing and
footwear category by 0.1 percent.
On the other hand, prices for services such as
education, restaurants and hotels, and health remained largely unchanged in
March.
Annual inflation rises
However, on a yearly basis, the Kingdom’s CPI
increased by 1.6 percent during March 2024 compared to the same period last
year.
This rise is primarily attributed to an 8.8
percent increase in the prices of housing, water, and electricity, as well as
gas and other fuels, alongside a 0.9 percent rise in food and beverage prices.
In contrast, prices of transportation decreased by
1.8 percent, and charges of personal goods and services decreased by 1.1
percent.
According to GASTAT, rental prices were the main
driver of inflation in March compared to the corresponding period in 2023.
“Actual housing rents increased by 10.5 percent in
March 2024, influenced by the increase in villa rents by 9.7 percent. This
increase had a significant impact on the annual inflation rate for March 2024
due to the weight of this sector (21 percent),” stated the GASTAT report.
Prices in restaurants and hotels also rose by 2.4
percent due to a 2.2 percent increase in food service prices.
Similarly, the recreation and culture sector
recorded a 0.7 percent increase, influenced by a 5.1 percent rise in holiday and
tourism prices.
Furthermore, the education category saw a 1.2
percent increase, driven by a 4.3 percent increase in secondary education fees.
However, prices in the furnishing and home
equipment sector decreased by 3.2 percent, driven by a 5.3 percent decline in
furniture, carpet, and flooring prices.
Also, prices in clothing and footwear decreased by
4 percent, due to a 6.6 percent decline in ready-made clothing prices.
Healthcare expenses and tobacco prices decreased
by 0.9 percent and 1.1 percent, respectively, compared to March 2023.
Wholesale Price Index
In another report, GASTAT noted that Saudi
Arabia’s wholesale price index rose by 3.8 percent in March compared to the same
month in 2023.
According to the authority, this rise in WPI was
driven by a 25.2 percent increase in the prices of basic chemicals and a 12
percent jump in the prices of refined petroleum products.
In the third month of the year, prices of raw
materials and metals decreased by 2.2 percent, and prices of metal products,
machinery, and equipment decreased by 0.6 percent.
The category encompassing food, beverages,
tobacco, and textiles saw a 2.4 percent rise, driven by a 10 percent increase in
leather, leather products, and footwear prices, along with a 4.9 percent uptrend
in grain mill products, starches, and other food items.
In contrast, agricultural and fishing products
experienced a marginal 0.2 percent upturn, propelled by a 2.1 percent climb in
live animals and animal products.
Conversely, raw materials and metals witnessed a
2.2 percent decline, primarily due to a corresponding decrease in stones and
sand prices.
Moreover, metal products, machinery, and equipment
recorded a 0.6 percent drop, attributed to a 6.5 percent decrease in radio,
television, and communication equipment prices, as well as a 2.8 percent
reduction in office equipment, accounting, and computer prices.
Average prices up
In a separate analysis, GASTAT noted that in
March, local melons and pumpkins saw the most significant upticks compared to
the prior month, with increases of 10.8 percent and 9.4 percent, respectively.
Additionally, Harri sheep and Naemi sheep also
experienced notable increases, rising by 8.5 percent and 7.1 percent,
respectively.
Conversely, the goods and services showing the
most substantial percentage drops in March, compared to February, were local and
imported onions, experiencing decreases of 17.9 percent and 13.2 percent,
respectively.
Additionally, medium local potatoes and Turkish
plums also saw notable declines, with decreases of 6.9 percent and 6.4 percent,
respectively.
Real estate price surges
GASTAT noted that in the initial quarter of 2024,
the Real Estate Price Index rose by 0.6 percent compared to its counterpart in
2023.
It attributed the surge to a 1.2 percent uptick in
residential land costs.
Conversely, prices experienced a decline in
commercial real estate by 0.5 percent and agricultural land sales by 0.1
percent.
The residential real estate division saw a notable
1.2 percent increase, primarily driven by a rise in housing prices of the same
magnitude.
This sector’s weight in the overall index
contributed significantly to the index’s uptick, according to the authority.
Among different residential properties, apartments
experienced an increase of 0.8 percent, while buildings decreased by 0.2
percent, villas by 2.3 percent, and houses by 1.6 percent in the first quarter
of 2024 compared to the same period last year.
Conversely, prices in the commercial real estate
sector declined by 0.5 percent, influenced by decreases of 0.5 percent in
commercial land prices and 1.1 percent in prices of commercial exhibitions.
However, the cost of commercial buildings and
centers remained stable in the first quarter of 2024, showing no significant
changes.
In contrast, the agricultural sector experienced a
marginal decline of 0.1 percent, primarily due to a 0.1 percent decrease in
agricultural land prices.
In the first three months of 2024, the General
Real Estate Price Index rose by 0.3 percent compared to the previous quarter,
driven by a 0.4 percent increase in residential sector prices, particularly in
land.
Apartment prices increased by 0.7 percent, while
residential buildings, villas, and houses saw slight declines.
Commercial sector prices remained stable, with no
significant changes, while agricultural sector prices also stabilized.