Saudi Rental Prices Drive Inflation to Highest Since Mid-2021

A nearly 20% leap in Saudi apartment rental prices drove inflation in January to its highest level since mid-2021.

(Bloomberg) —

A nearly 20% leap in Saudi apartment rental prices drove inflation in January to its highest level since mid-2021.

Price growth climbed an annual 3.4% from 3.3% in December, according to the Saudi General Authority for Statistics. Housing costs, which make up roughly a quarter of the consumer basket, grew 7.7%, because of steeper increases in rents for apartments.

Saudi Arabia is seeking to draw in global companies, expatriate workers and their families as part of plans to transform itself into a regional hub for business rivaling the commercial hub of Dubai.

The Saudi government sees inflation averaging 2.1% in 2023, according to the state budget published last year. Authorities have taken measures to contain price growth, including setting a cap on domestic gasoline costs last July.

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