The inflation in Saudi Arabia has fallen to 2.7% in the month of March 2023, which is estimated to be the lowest in 8 months.
While the Consumer Price Index (CPI) has recorded an increase of 2.7%, compared to March 2022, the inflation rate in Saudi Arabia maintained its relative stability during Q1 of 2023, reaching 3.4% in January, then falling to 3% in February 2023.
The figures were according to the Consumer Price Index March 2023 report issued by the General Authority for Statistics (GASTAT), which explained that the main driver of CPI in March, compared to March last year, was the high prices of housing, water, electricity, gas, and other fuels by up to 7.4%, and food and beverages by 2.3%.
GASTAT indicated that rent prices had the biggest influence on the high rate of inflation in March 2023. The actual rent for housing in Saudi Arabia increased by 8.7% in March this year, which was affected by the increase in apartment rental prices by 22.0%.
The stability of inflation rates in the Kingdom during Q1 of 2023 was the result of a solid economy, and the huge positive impact that was achieved due to the measures and procedures which Saudi Arabia hastened to take early to confront the expected supply chain crisis.
The signs of the supply chain crisis appeared after the world emerged from the COVID-19 pandemic, but is still suffering from its consequences.
Moreover, the royal orders to fix the maximum ceiling of energy prices contributed to stabilizing inflation rates in the Kingdom significantly, despite their escalation in several countries of the world.
It is noteworthy that the reasonable or balanced inflation rates that any society could witness come as a part of the dynamism of the economy and its ability to protect itself from potential crises.
But if the country witnesses an unreasonable and unbalanced increase in inflation rates, then it is considered a negative indicator of economic stagnation in that society.