Government data showed that the annual inflation rate in Saudi Arabia remained at 1.6% for the third month in a row in May, while rising housing rents remain the main driver.
Actual housing rents increased by 10.5% compared to last year, affected by a 14.3% increase in apartment rents, according to the General Authority for Statistics.
In general, prices in the housing, water, electricity, gas and other fuel sectors increased by 8.7% compared to last year.
The prices of the food and beverage division increased by 1.4% on an annual basis, while the hotels and restaurants division recorded an increase of 2.5%, affected by the increase in the prices of catering services by 1.9%.
The prices of clothing and shoes decreased by 4% compared to last year, affected by a decrease in the prices of ready-made clothing by 6.9%, and the prices of purchasing vehicles fell by 4.1%, which led to a decrease in the prices of the transportation department by 2.4%.
On a monthly basis, prices rose 0.2% in May compared to April.
At less than 2% since the beginning of the year until now, inflation remains relatively low in the Kingdom compared to global levels, as government policies help limit the impact of global price increases.
Non-oil activities
It is noteworthy that the growth of non-oil commercial activities in Saudi Arabia declined in May, with new orders rising at the slowest pace in 25 months, according to data shown early this month.
The seasonally adjusted Riyad Bank Purchasing Managers’ Index (PMI) fell to 56.4 in May, from 57 the previous month, the second lowest reading in 22 months. Readings above 50 indicate growth in activity.
The production sub-index fell to 60.1, its lowest level since January, and from 61.9 in April, although it remains in a strong growth mode supported by demand and the completion of pending orders.
