Saudi Arabia's sharp policies conquer inflation, securing year's lowest rate at 2.3% for July

Posted on August 18, 2023   |  

Saudi Arabia's competent management results in effective inflation control, achieving a year-low of 2.3% in July, a decrease from the previous year's 2.7% and even surpassing June's 2.7%.

A notable reduction in housing rental rates, notably from 10.8% in June to 10.3% in July, significantly contributes to the inflation containment strategy.

Housing rental costs, constituting a substantial 21% of the consumer price index, emerge as a crucial factor in the overall inflation rate.

Government initiatives in the real estate and housing sector stimulate the supply of real estate products, influencing rental prices.

A decline in real estate financing due to the Saudi Central Bank's recent interest rate increase, combined with a reduction in consumer loans, contributes to the comprehensive strategy for addressing inflation.