Saudi Arabia's annual inflation rate remains at 1.8% in August

Saudi Arabia's annual inflation rate remained steady at 1.8% in August, marking the fourth consecutive month with no change, according to official data released on Tuesday, reports Reuters. Consumer price index-based inflation has been hovering around 1.7% to 1.8% throughout the year, mainly due to rising prices in sectors such as housing, water, electricity, gas, and other fuels.

The August data, published by Saudi Arabia's General Authority for Statistics, indicated a 3.9% increase in these sectors annually, a slight decrease from the 4.2% rise recorded in July. Saudi Arabia has been facing significant challenges, including intensified attacks by Iran-backed Houthis and Iraqi militias on its energy infrastructure, which led the kingdom's East-West pipeline to shut down on September 10.

This shutdown, which had been helping alleviate congestion in the Strait of Hormuz, has put pressure on oil flows from the world's largest oil exporter. As the kingdom's economy still heavily relies on hydrocarbons, the shutdown has put additional strain on its economy. On a month-over-month basis, the August Consumer Price Index (CPI) saw a slight increase of 0.1%.