Saudi Arabia’s Inflation Eases to 1.9% in November Despite Rising Housing Costs

Saudi Arabia’s annual inflation rate eased to 1.9 percent in November, down from 2.2 percent in October, according to data released by the General Authority for Statistics on Monday.

Consumer price inflation has largely remained in the range of 2.1 to 2.3 percent throughout the year, with higher housing costs continuing to provide upward pressure. Rental prices increased by 5.4 percent year on year, while passenger transport costs rose by 6.4 percent during the same period.

To address rising rents, the Saudi real estate authority introduced new regulations in September, including a five-year freeze on annual rental increases for residential and commercial properties located within Riyadh’s urban boundaries.

Earlier this year, the government also approved a Real Estate Ownership and Investment Law, which is set to make property purchases easier for foreign investors once it comes into effect next year.

Saudi Arabia continues to invest heavily in large-scale developments around Riyadh as part of its Vision 2030 strategy, aimed at boosting tourism, expanding the private sector and reducing reliance on oil revenues.

On a month-on-month basis, the consumer price index recorded a modest increase of 0.1 percent in November.