The inflation rate in the Kingdom of Saudi Arabia increased by 3.4% during the past year (2020), after recording an increase for the twelfth month in a row to remain in the positive range throughout the year.
The inflation rate in the Kingdom increased, according to the monthly report of the General Authority for Statistics issued today, Thursday, by 5.3% last December compared with the same month of 2019.
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the statistics attributed the high rate of inflation; Significantly to increase the value-added tax in Saudi Arabia from 5% to 15%, which came into effect in July 2020.
The biggest upward pressure on inflation came from food and beverage prices, which rose by 12.7% in December 2020, and transport prices, up 6.9%.
The food division was affected by the increase in meat and poultry prices by 14.8%, and the prices of vegetables by 20.8%, and this section had a noticeable effect on the rise in annual inflation.
Tobacco prices also increased by 13.7%, with the increase in cigarette prices by 13.1%, and the communications department rose 11.4% due to the rise in the prices of telephone and fax services by 12.9%.
On a monthly basis, the inflation rate in December decreased 0.2% compared to November 2020; As a result of a decrease in the transportation section by 1%, with a decrease in vehicle purchase prices by 1.6%, and also a decrease in the section of housing, water, electricity, gas and other fuels by 0.2%; Affected by the 0.2% decline in housing rents.
