March 20, 2025

Saudi Inflation Holds at 2% in February ๐Ÿ“ˆ

Saudi Arabiaโ€™s inflation rate remained steady at 2% year-on-year in February, largely driven by an 8.5% surge in housing rents, according to the General Authority for Statistics (GASTAT). This contributed to a 7.1% rise in the housing, water, electricity, gas, and fuels category.

๐Ÿ”น Key Sector Highlights:
โœ… Food & Beverage: +1%, driven by 3.7% higher meat & poultry prices
โœ… Personal Goods & Services: +3.9%, led by 26.7% increase in jewelry prices
โœ… Restaurants & Hotels: +0.8%
๐Ÿ”ป Furniture & Home Equipment: -2.5%
๐Ÿ”ป Clothing & Footwear: -1%, with ready-made clothing down 2.4%
๐Ÿ”ป Transportation Costs: -1.5% YoY

On a monthly basis, consumer prices saw a 0.2% increase, mainly due to a 0.4% rise in housing costs.

๐Ÿ“Š Wholesale Price Index (WPI):
โœ… Up 1.5% YoY, led by a 3.4% rise in transportable goods and a 3.9% increase in agriculture & fishery products
๐Ÿ”ป Metal products & machinery: -0.5%
๐Ÿ”ป Ores & minerals: -1.9%

Saudi Arabia’s inflation remains in line with Vision 2030 economic goals, balancing growth and price stability. The government projects 1.9% inflation for 2025, while the World Bank forecasts 2.3%โ€”below the GCC average.

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