Saudi Arabia revises 2024 inflation projection down to 1.7%

Posted on August 30, 2024   |  

Saudi Arabia's inflation forecast for 2024 has been adjusted to 1.7%, down from the earlier 2%, driven by growth in the non-oil sector.

Inflation reached 1.6% in the first half of 2024, mainly due to higher housing costs.

Food and beverage prices are expected to rise gradually in the second half of the year, following global trends.

Shipping costs might add some pressure, but the effect on overall inflation is expected to be small.

The rental market is likely to stay tight throughout 2024, influenced by high interest rates and an increase in expatriates.