Inflation eased slightly to 1.9% y-o-y in December 2024, down from November’shigh of 2%, according to the General Authority for Statistics’ (Gastat) latest consumer price index (pdf). This marks the first month of decline since August, ending a four-month upward trend. On a monthly basis, consumer prices remained basically unchanged, despite a 0.5% uptick in the housing, water, electricity, gas, and other fuels category. Gastat’s full report on December’s average prices of goods and services is available here (pdf).

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Rising rents continue to prop up housing costs: The heaviest component in the Saudi consumer basket — housing, water, electricity, gas and other fuels — recorded an 8.9% y-o-y increase, primarily driven by a 10.6% y-o-y increase in home rentals, in addition to a 9.9% increase in villa rentals.

Food bills are also on the up: A 2.9% y-o-y increase in meat and poultry prices drove food and beverage prices up by 0.8% in December. Restaurants and hotels were up 0.9% on the back of a 2.3% y-o-y increase in the cost of hotel and furnished apartment services.

Also feeling the pinch: Education recorded a 1.1% y-o-y increase in prices on the back of a 1.8% rise in intermediate and secondary education fees. Jewelry and watches, among other precious antiques, were up 20.2% y-o-y, pushing the price of personal goods and service up by 2.2%.

Cooling off: Furnishing and home equipment prices fell 2.8% y-o-y in December, driven by a 5.1% drop in furniture, carpets, and flooring prices. Similarly, clothing and footwear saw a 2.2% drop, with ready-made clothing prices dipping 4.2%. Transportation costs were down 2.5%, as vehicle purchase prices saw a 3.9% decrease.

IN CONTEXT- Inflation in the Kingdom has stayed comparatively tame relative to global trends, Reuters reports, with the IMF projecting it will hold steady at 1.9% and 2.0% this year and the next. December’s reading falls slightly above the 1.7% clip the Finance Ministry had penciled in for 2024.

THE YEAR IN REVIEW- Housing costs, particularly rents, were the primary driver of Saudi’s annual inflation rate throughout 2024. Inflation kicked off the year at 1.6% in January before accelerating to 1.8% in February, and dipping back to 1.6% in March through to May. The rate decelerated slightly to 1.5% in June and July — the slowest growth rate of the year — before picking up in August at 1.6% and September at 1.7%. The highest inflation rate of the year was recorded in November at 2%, topping October’s earlier peak of 1.9%.

WHOLESALE PRICE INDEX-

Producer prices were up 1.2% y-o-y in December 2024, on the back of a 12% increase in the prices of refined petroleum products, according to Gastat’s wholesale price index (pdf). Meanwhile, December’s wholesale prices were up 0.2% m-o-m.

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