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Saudi Consumer Inflation Stable at 1.8% in July; Wholesale Price Growth Accelerates

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Saudi Consumer Inflation Stable at 1.8% in July; Wholesale Price Growth Accelerates

Saudi Arabia's annual consumer inflation remained at 1.8% for the third straight month in July, as expected, while the kingdom's wholesale costs continued to climb, according to economic data published Thursday.

The country's General Authority for Statistics said the higher prices were driven by a 4.2% jump in housing, fuel and utility expenses, followed by increases of 1.5% in food and beverages and 1.4% in transportation.

Month-on-month, consumer prices in the country grew 0.2%, unchanged for the fourth consecutive month and above the consensus estimate of a 0.1% gain.

Meanwhile, annual wholesale price inflation in Saudi Arabia accelerated to 5% in July, following a 4.8% growth in the previous month. The increase was primarily fueled by a 1.5% rise in metal products, machinery and equipment as well as a 9.7% surge in other transportable goods.

Conversely, the kingdom's monthly wholesale price growth stabilized, down from the 0.2% uptick in June. The change was attributed to a 1.8% increase in agriculture and fishery items.

In a separate same-day release, the General Authority for Statistics also reported that Saudi Arabia's producer price growth came in at 8.5% year over year in June, following a 7.5% rise a month ago, due to higher costs in manufacturing, utilities and water and waste management services. On a monthly basis, the index ticked up 0.6% amid an increase in manufacturing prices.

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