Overall rents for housing increased by 8.7% in March from a year earlier, driven by a 22% increase in rents for apartments, and served as the biggest driver of inflation due to their relative high weighting of 21% in the Saudi consumer basket.
Food and beverage prices, which were the main driver of inflation during much of 2022, rose 2.3% from the same period a year earlier, while restaurants and hotel prices increased 6.3%. However, compared to February, consumer prices increased by 0.1%, the General Authority for Statistics said, with housing, water, electricity, gas, and other fuels prices up by 0.4%, driven by an increase in rental costs. In a research note last month, Abu Dhabi Commercial Bank said it sees a decelerating trend in inflation in Saudi Arabia over the coming months on the basis of "easing of global supply-side costs, the impact of higher interest rates on consumer demand and a strong base from the second half of 2022." (Reporting by Rachna Uppal Editing by Bernadette Baum)
