Inflation in Saudi Arabia rises to 6.2% in June

Saudi Arabia’s inflation accelerated to 6.2% in June 2021, according to recent data by the General Authority for Statistics (GASTAT).

The authority attributed the growth in inflation to an increase in the value-added tax (VAT) from 5% to 15%, effective July 1, 2020.

The cost-of-living index for June rose to 104.25 points, according to the base year 2018, compared to 98.20 points the year before.

The increase in consumer price index (CPI) was mainly driven by a rise of 8.1% year-on-year (YoY) in the average prices of food and beverages, affected by higher food prices by 8%, and a 22.6% increase in the transport sector as vehicle prices grew by 10.6%.

Communication and tobacco sectors rose by 13.2% and 12.3%, respectively, as the former was impacted by 15.4% growth in phone and fax service prices and the latter was affected by a 13.5% increase in cigarette prices.

Meanwhile, education sector declined by 9.1% as the pre-primary and primary education dropped by 14.3%, while intermediate and secondary education fell by 11%.

Housing, water, electricity, gas & other fuels sector was also down 2.3%, due to a 3.4% fall in housing rents.

The table below illustrates the change in the CPI comparison YoY in June 2021:

For more data, visit Argaam Tools