- In July, the consumer price index (CPI) in Saudi Arabia saw a decrease in its year-on-year increase, reaching 2.3% compared to June's 2.7%. The slowdown was attributed to a deceleration in the growth of housing rent, particularly in actual housing rents which contribute 21% to the CPI. Notably, actual housing rents declined from 10.79% in June to 10.33% in July.
- The annual increase in apartment rents also eased from 23% to 21%, and villa rents saw a marginal decrease from 7.9% to 7.8%. Conversely, prices of food and beverages rose by 1.4%, transportation services by 6.8%, education by 1.8%, and holiday/tourism offers by 7.5%.
Why it matters
The decline in housing rent growth has contributed to the overall reduction in the consumer price index, which has implications for households' purchasing power and the overall cost of living. This provides insights into the stability of the housing market and the potential impact on consumer spending patterns.