Saudi Inflation Hikes in December on Higher Gasoline Prices

Saudi annual inflation rate hit 1.2 % in December, slightly up from the previous month’s 1.1 %, according to data released from Gastat. Transport prices were 7.2 % higher from a year ago, which was due to the increase in gasoline costs. A 6.3 % spike in vegetable prices also caused the food and beverages group to cost 1.1 % more in December from a year earlier.

In addition, yearly inflation in communication services reached 1.4 % due to a rise in telephone and telefax prices. Education costs were another driver of the jump in consumer prices, going up by 4.8 %.

On the other hand, clothing and footwear prices dropped by 1.6 %. The costs of the group of housing, water, electricity, gas and other fuels declined by the same %age in December as well. In monthly terms, consumer prices in the Kingdom tapered off by 0.1 % in December as food and beverages prices were 0.7 % lower during the month.