Inflation in Saudi Arabia is at its lowest rate in more than a year and a half
The consumer price index index in the Kingdom continued its series of decline thanks to the economic measures and measures that the government was quick to take early on, with the inflation rate last September recording 1.7 percent, on an annual basis, which is the lowest since February 2022, which was recorded. It then had 1.6 percent; That is, more than a year and a half.
The government is taking accelerated measures to confront the global rise in inflation rates, the most prominent of which was fixing the ceiling on fuel prices, with the state bearing the difference in the increase, in addition to allocating financial support worth 20 billion riyals ($5.3 billion) as cash transfers to support beneficiaries of social security and the citizen account program. As well as to support small livestock breeders, as well as increasing strategic stocks of basic materials and ensuring their availability.
The consumer price index in Saudi Arabia recorded an increase of 2 percent on an annual basis last August, down from 2.3 percent in July, despite the increase in actual housing rents by 10.8 percent compared to August of the year. the past.
Data issued by the General Authority for Statistics in the Kingdom, on Sunday, showed that the slowdown in inflation in September was driven by a slowdown in rents, which constitute 21 percent of the weight of the index. The growth rate of rents paid for housing in September reached 9.76 percent, the lowest level since April 2022, after reaching 10.77 percent in August.
Food and drinks
According to the Statistics Authority report, the food and beverages section recorded an increase of 4.4 percent, affected by a 4.6 percent increase in food prices, which in turn was affected by a 6.1 percent increase in meat and poultry prices.
The rise in the food and beverage section had a significant impact on the rise in annual inflation during October 2022, given its weight in the index of 18.8 percent.
As for the section on housing, water, electricity, gas and other types of fuel, it witnessed an increase in September by 3.3 percent, affected by the increase in rent paid for housing by 3.7 percent.
As for the miscellaneous personal goods and services section, it also increased by 4.4 percent, affected by vehicle purchase prices by 5.8 percent.
Entertainment and culture
The entertainment and culture section rose by 2.9 percent, affected by a 15.1 percent increase in the prices of rental expenses for rest houses and camps, while the prices of the clothing and shoes section decreased by 1.2 percent, affected by a 2.5 percent decrease in the prices of ready-made clothing.
For their part, experts told Asharq Al-Awsat that the government was able to control the inflation rate due to the economic measures and measures it quickly took early on to confront the rise in global inflation.
“G20”
The advisor and professor of commercial law, Dr. Osama Al-Obaidi, told Asharq Al-Awsat that the decrease in the inflation rate to 1.7 percent reflects the success of the Saudi government’s policy in containing and controlling inflation.
Dr. Al-Obaidi continued that government measures contributed to achieving this positive result with the strength of the Saudi economy. The Kingdom achieved the highest growth rates among the G20 countries, due to the growth of non-oil revenues.
According to the advisor and professor of commercial law, the decline in inflation rates in Saudi Arabia comes as a result of the government’s efforts to enhance economic activity, increase job opportunities, continue social protection programs, and reduce living burdens through measures to contain inflation and implement “Vision 2030” initiatives.
Al-Obaidi added that the decline in inflation is also due to the development of the tourism, entertainment, cultural and sports sector and the increase in the number of visitors to the country, in addition to the Central Bank tightening monetary policy by raising the interest rate in line with the decision of the US Federal Reserve, stressing that all of these measures led to containing the rate. In the Kingdom and reduce it to the lowest levels.
Government approach
For his part, economic expert Abdul Rahman Al-Jubairi told Asharq Al-Awsat that the decline in the inflation rate in the Kingdom to its lowest levels in more than a year and a half confirms the government’s success in controlling the consumer price index, which continues to record a decline thanks to early precautionary measures.
Al-Jubeiry continued that Saudi Arabia still records the lowest inflation rates among countries and the G20 in particular, and this is a positive indicator that indicates the continuation of the government approach, which reflects positively on citizens and residents of the country.
He explained that the reforms undertaken by Saudi Arabia made its economy strong and helped it overcome global inflation crises, indicating that the rate in Saudi Arabia reaching 1.7 percent during the previous September, after an increase of 3.1 percent in the same period in 2022, gives a positive perception of the impact of the reforms. conducted by the country.
Abdul Rahman Al-Jubairi believes that the inflation rate will witness a further decline in the coming period, making the Saudi economy the fastest growing this year.
The economist added that lower inflation will not be achieved without prior measures from the government to diagnose global economic crises and the extent of their impact on the national economy in order to contain the rate and reduce it to the required levels, stressing that government measures have proven successful in this path.
According to Al-Jubeiry, the global inflation crisis is continuing to rise, which indicates the possibility of the US Federal Reserve raising the interest rate in the coming periods.
2023-10-16 11:13:56
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