RIYADH — The annual inflation rate in Saudi Arabia remained stable at two percent in February 2025, maintaining the same year-on-year rate as the previous year. This rate underscores Saudi Arabia's position as having one of the lowest inflation rates among G20 countries. Inflation in the Kingdom reached two percent in February, compared to the same month last year, according to the report issued by the General Authority for Statistics (GASTAT) on Sunday. This was driven by a 7.1 percent increase in housing, water, electricity, gas, and fuel prices, particularly an 8.5 percent increase in housing rents. The Consumer Price Index report for February 2025 revealed one percent increase in food and beverage prices, driven by a 3.7 percent rise in meat and poultry prices, and a 3.9 percent increase in miscellaneous personal goods and services, impacted by a 26.7 percent rise in watches, jewelry, and antiques prices. Restaurants and hotels prices also rose by 0.8 percent, driven by a 2.4 percent rise in furnished hotel services prices. The education sector recorded a 0.4 percent increase, impacted by a 4.3 percent rise in higher education tuition fees. Transportation prices fell by 1.5 percent, impacted by a 2.4 percent decline in vehicle purchase prices. Furnishings and home furnishings prices fell by 2.5 percent, impacted by a 4.4 percent decline in furniture, carpets, and floor coverings prices. Clothing and footwear prices fell by one percent, impacted by a 2.4 percent decline in ready-made garments prices. The report indicated an 11.2 percent increase in villa rental prices. The increase in housing, water, electricity, gas, and fuel prices significantly contributed to the continued annual inflation rate in February, given the 25.5 percent weighting of this category. On a monthly basis, the inflation rate recorded a relative increase of 0.2 percent in February compared to January 2025, driven by a 0.4 percent increase in housing rental prices. The index also recorded a 0.7 percent increase in the personal goods and services category, due to a 5.5 percent increase in insurance prices, a 0.7 percent increase in entertainment and culture, a 0.3 percent increase in clothing and footwear, and a 0.1 percent increase in transportation and restaurants and hotels. Compared to January 2025 prices, the food and beverages category recorded a 0.2 percent decrease in February, as did the home furnishings and equipment category, which decreased by 0.3 percent, education by 0.2 percent and communications by 0.1 percent. The Consumer Price Index (CPI) reflects changes in the prices paid by consumers for a fixed basket of goods and services consisting of 490 items. This basket was selected based on the results of the Household Expenditure and Income Survey conducted in 2018. The relevant prices are collected through field visits to points of sale, and the CPI statistics in the Kingdom are published on a monthly basis.
