The General Authority for Statistics of Saudi Arabia has revealed a notable decline in the prices of vehicles, marking a 3% decrease in April 2024 compared to the previous year.
The authority’s data indicated that vehicle prices experienced a nearly 3% drop in April, contributing to an overall decrease of 1.6% in transportation costs. Additionally, prices in the clothing and footwear sector saw a decline of 4.2%.
Despite these reductions, Saudi Arabia maintained an annual inflation rate of 1.6% in April, consistent with the previous month. This stability was largely supported by a rise in housing rents, which saw an increase of 8.7% in the subcategory of housing, water, electricity, gas, and other fuels. Housing rents particularly surged by 10.4% year-on-year.
Food and beverage prices witnessed a modest uptick of 0.8% year-on-year, while prices in the restaurant and hotel sector experienced a 2% increase. On a month-on-month basis, prices in April rose by 0.3% compared to March, with housing rents and prices serving as the primary driving factors.
Despite global trends of higher inflation rates, Saudi Arabia has managed to keep inflation relatively low, remaining below 2% year-to-date. Government policies have played a crucial role in mitigating the impact of international price hikes, thus helping to stabilize the economy and maintain consumer purchasing power.
The decline in vehicle prices comes as welcome news for consumers in Saudi Arabia, offering potential savings and affordability in the automotive market. Lower transportation costs could also have broader implications for the economy, potentially stimulating consumer spending in other sectors.
However, the continued increase in housing rents underscores ongoing challenges in the housing market, posing potential concerns for affordability and living standards, particularly for low and middle-income households.
As the General Authority for Statistics continues to monitor economic indicators, policymakers may consider further measures to address inflationary pressures and ensure sustainable economic growth in Saudi Arabia. Despite the current challenges, the overall economic outlook remains cautiously optimistic, with efforts underway to maintain stability and support the welfare of citizens and residents alike.
