Government data released on Monday indicated that the annual rate of inflation in Saudi Arabia declined moderately to 1.9 percent in November compared with 2.2 percent in October.
The consumer price index-based inflation has been around 2.1 percent to 2.3 percent throughout the year, supported by the increasing housing prices.
According to the Saudi Arabia General Authority of Statistics, the housing rent prices increased by 5.4 percent and passenger transport prices by 6.4 percent.
In an attempt to address the rent increase, in September, the real estate authority in Saudi Arabia proposed new regulations that encompassed a five-year moratorium on annual rental change of residential and commercial property within the urban areas of Riyadh.
In the same year, the government passed a Real Estate Ownership and Investment Law that will facilitate the purchasing of property by foreigners as long as the law comes into force next year.
The kingdom is currently constructing several giant new projects around Riyadh as part of its Vision 2030 initiative to increase both tourism and aimed at developing the private sector.
Thus, on a month-on-month basis, November’s CPI surged marginally by 0.1 percent.
