Daily Times

Saudi Arabia’s annual inflation rate remained at 1.6% for the third month running in May, government data showed on Sunday, with higher housing rents still the main driver. Housing rents rose 10.5% from a year earlier underpinned by a 14.3% rise in apartment rents, according to the General Authority for Statistics. Overall, prices in the subcategory of housing, water, electricity, gas and other fuels rose 8.7% from the previous year. Food and beverage prices rose 1.4% year on year, while prices for hotels and restaurants rose by 2.5% driven by a 1.9% increase in the price of food services. Prices of clothing and footwear fell 4% from the previous year, and vehicle purchase prices dropped 4.1% to bring overall transportation costs down by 2.4%. On a monthly basis, prices rose 0.2% in May from April. At below 2% year to date, inflation has remained relatively subdued in Saudi Arabia compared with global levels, with government policies helping limit the impact of international price increases.