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Saudi Arabia's inflation rose to 3.1% in September, driven mainly by higher food prices, rents, and the rising cost of utilities, the General Authority for Statistics said on Thursday. Compared to the previous month, the Consumer Price Index (CPI) for September was marginally higher, up 0.3%, it added.
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Food and beverages and transport prices were again the main drivers of inflation, both rising 4.3% in September, the General Authority for Statistics said in a statement. The sub-index was pushed higher by food and beverages prices, that rose 4.6%, in particular meat prices which jumped 6.5%. The sub-index makes up 18.8% of the consumer basket.
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Saudi Arabia’s main index ended the last session of the week in red, with investors remaining concerned about the country’s annual inflation rate. The Tadawul All Share Index dipped 1.12% to end at 11,421, while the parallel market Nomu gained 0.23% to finish at 19,769.
Why it matters
Record inflation worldwide has prompted a flurry of interest rate hikes by central banks, increasing the risk of a global recession. Inflation in the Gulf has been more contained, thanks to government mitigation measures such as fuel price caps. Last month, Saudi Arabia's central bank governor Fahad al-Mubarak said inflation in the kingdom was still within a reasonable rate. In its latest pre-budget statement, the finance ministry estimated 2022 inflation at 2.6%.
