Average annual inflation for consumer prices was up 1.7% in 2024 compared to 2023, with last year’s annual CPI index tracking at 111.3 points compared to 2023’s 109.5, according to the General Authority for Statistics’ (Gastat) Annual Consumer Price Index 2024 (pdf). Gastat calculates CPI indices relative to a 2018 base year.

To no one’s surprise, rent is the biggest culprit: The heaviest-weighted component in the Saudi consumer basket — housing, water, electricity, gas and other fuels — was up 8.8% on the back of a 10.6% uptick in home rentals.

And some more of the usual suspects: Food and beverage prices were up 0.8%, driven by a 1.3% increase in meat and poultry. Other sectors seeing price increases included restaurants and hotels (up 2%), miscellaneous goods and personal services (up 0.4%), and education (up 1.3%).

Softening the blow: Consumer categories which saw prices fall last year include clothing and footwear (down 3.4%), furnishings and household equipment (down 3.4%), transport (down 2.4%), communication (down 1.7%), entertainment and culture (down 1.3%), health (down 1.1%), and tobacco (down 1.2%).

IN CONTEXT- Inflation in the Kingdom has stayed comparatively tame relative to global trends, Reuters says, 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 rates 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% which inflation reverted to in December.

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