The cost of living in Saudi Arabia is going up, according to data released by the Saudi Arabian Monetary Agency (SAMA), making life more difficult for about three million citizens living below the poverty line. The Agency said that during the first quarter of 2009, the average cost of living index registered an increase of 0.6 percent compared to the fourth quarter of 2008, recording an annual rise of 6.9 percent from first quarter of 2009 compared with the first quarter of 2008. The Ministry of Social Affairs has reported during the first quarter of this year that the three million citizens living below the poverty line will remain vulnerable and that measures should be undertaken to alleviate their socio-economic condition. Also severely affected by the rise in cost of living are foreign workers, particularly the labor sector. SAMA reported that the index for renovation, rent, fuel and water rose by 3.4 percent, while prices of goods and services went up by 2.7 percent. Cost of transport and communications rose by 0.6 percent. The SAMA report said that indications in other sector are rosy. The index for food and beverages declined by 1.8 percent, house furnishing by 0.4 percent and fabrics, apparel and shoes by 0.1 percent. The index for medical care and education and entertainment remained unchanged. The decline in the cost of food and beverage has been attributed to increase in local production. A similar decrease in the cost of clothing materials and leather goods, like shoes, has been attributed to the surge of imports of these commodities.
