Saudi Arabia: Inflation hits highest level since July 2023 in November
Latest reading: Inflation edged up to 2.0% in November from October’s 1.9%, as food prices rose more sharply. November’s figure represented the highest inflation rate since July 2023. Meanwhile, housing and utilities rose less quickly than in the prior month, but still at the fifth-speediest pace since comparable records began in January 2013; rents have surged due to population growth and an influx of foreign companies.
Accordingly, the trend pointed up slightly, with annual average inflation coming in at 1.7% in November (October: 1.6%).
Finally, consumer prices increased 0.28% over the previous month in November, which was below October’s 0.31% rise.
Outlook: Inflation should remain tepid by emerging market standards for the foreseeable future, despite the recent surge in rents; government subsidies plus the riyal’s peg to the U.S. dollar will keep a lid on price pressures.