GaStat: Food Prices Lift Inflation in KSA

The Consumer Price Index (CPI) in the Kingdom of Saudi Arabia (KSA) increased 5.7 % in January 2021 compared to the same month last year 2020 and 3.5 % compared to last December, according to data issued by the General Authority for Statistics (GaStat). The CPI index still reflects an increase in value-added tax from 5 % to 15 %, which began to be applied in July 2020, GaStat stated.

GaStat attributed the increase in inflation on an annual basis to an increase in the prices of food and beverages by 12.3 % and those of transport by 9.6 %. Food prices are the largest influence in the increase in inflation in January 2021 compared to January 2020. The increase recorded by the food and beverage division was affected by the rise in food prices by 12.6 %, which in turn was affected by a rise in the prices of meat and poultry by 14.4 % and the prices of vegetables by 18.2 %.

The communications division index increased by 13.8 %, affected by the 16.3 % increase in the prices of telephone and fax services. The transportation division recorded an increase of 9.6 %, due to the increase in vehicle purchase prices by 11.1 %, according to GaStat.

The authority also reported that the monthly inflation index was affected by the rise in the transport section by 2 %, which in turn was affected by the rise in operating prices of personal transport equipment by 5.5 %. The 1.6 % increase in the communications section was affected by the 2.3 % increase in the prices of telephone and fax services.