Yesterday, government data showed that the annual inflation rate in Saudi Arabia declined for the second month in a row, to 2.3% in July, compared to 2.7% in June, marking the slowest pace in more than a year.
According to the analysis of “Al-Watan” according to the data of the General Authority for Statistics, the rate of inflation decline since the beginning of the current year 2023 amounted to about 1.1%, as it reached the highest rate of inflation during the past months in January 2023, as inflation recorded a rate of 3.4 and returned to decline in February to 3%, then began It gradually decreased rapidly over the past months until it reached 2.3% last July.
A jump in housing, water and electricity prices
The General Authority for Statistics said that the rise in prices is mainly due to an 8.6% jump in the prices of housing, water, electricity, gas, and other fuels, and a 1.4% increase in food and beverage prices.
“Looking forward, we believe that the inflation rate will continue to decline during the remainder of this year to between 1 and 1.5% on an annual basis,” said James Swanston, an economist in Middle East and North Africa affairs at Capital Economics, in a research note. , and it will hover around that rate in 2024.”
Inflation in July, the slowest since June last year, was lower than Capital Economics’ forecast of 3.1% and the median forecast in a poll of 2.4%.
Prices for housing, water, electricity, gas and other fuels rose 0.3% from June, when they rose 9.1% year-on-year. Food and beverage prices increased 0.4% from June.
Clothing and footwear prices decreased by 3.9% in July on an annual basis and by 0.8% on a monthly basis. Home furnishing and equipment prices declined 2.5% on an annual basis and 0.3% on a monthly basis.
comparison to last year
Inflation rates in the Kingdom maintain a reasonable level and balanced rates compared to most countries in the world. During the month of July 2023 AD, the inflation rate recorded a slight increase of 2.3% when compared to the same month of last year 2022 AD.
It is noteworthy that the economies of many countries of the world, including developed countries, have been suffering from sharp increases in inflation rates for several months. Experts and economic analysts confirm that reasonable and balanced inflation rates that any society may witness are part of the dynamism and vitality of the economy in this society and its ability to protect itself. From any possible crises, while the unreasonable and unbalanced increase in inflation rates is a negative indicator of the existence of a state of economic stagnation or serious economic challenges in societies that are witnessing runaway inflation rates.
Inflation rates since July 2022