According to the General Authority for Statistics, higher food prices, rents, and rising utility costs were the main reasons for Saudi Arabia’s inflation climbing to 3.1% in September.
The Consumer Price Index (CPI) for September was 0.3% higher than it was the month before, it was added.
While housing rentals increased 3.6% in September, food and beverage costs increased 4.3%, bringing the overall increase in housing, water, electricity, gas, and other fuels to 3.2%.
The possibility of a global recession has increased as central banks have raised interest rates rapidly in response to record global inflation. Thanks to government mitigation measures like gasoline price controls, inflation in the Gulf has been more tightly controlled.
Saudi Arabia’s head of the central bank, Fahad al-Mubarak, stated last month that the country’s inflation rate was still within acceptable bounds. According to the finance ministry’s most recent pre-budget statement, inflation would be 2.6% in 2022.
With the aid of initiatives like a gas price cap, Saudi Arabia was able to control inflation and lessen the effects of price hikes, it was said.
Due to the currency’s peg to the US dollar, the Saudi central bank has increased interest rates in line with the US Federal Reserve; nonetheless, the government has projected a major increase in budgeted spending to maintain growth.
Saudi Arabia’s GDP is expected to rise by 7.6% this year, according to the International Monetary Fund.