The Consumer Price Index (CPI) Report for February 2025 has revealed that headline inflation dropped to 4.0% in the country.
This inflation rate is 0.16 percentage points lower than the 4.1% headline inflation observed in January 2025.
The 4.0% headline inflation observed in February 2025 is 0.3 percentage points lower than the inflation rate of 4.3% observed in February 2024.
The Report further notes that in February 2025, the inflation rate for goods stood at 4.3%, while for services the rate stood at 3.5%.
Meanwhile, year on year alcoholic beverages, tobacco, and narcotics increased from 3.1% to 11.8%. This is due to price increases observed mainly in wine and beer in this category.
Additionally, inflation for restaurants and hotels decreased from 13.5% in February 2024 to 6.1% in February 2025. This is due to slower growths observed mainly in accommodation services in this category.
Miscellaneous goods and services also decreased from 12.8% in February 2024 to 6.3% in February 2025 due to slower growths in other services and electrical appliances for personal care products in this category.
Under the month-on-month highlights for February 2025 compared with January 2025, restaurants and hotels increased from -7.8% in January 2025 to -0.8% in February 2025, where growth was observed in accommodation services in this category.
Education under the month-on-month highlights for February 2025, decreased from 4.6% in January 2025 to 0.0% in February 2025, indicating zero growth rates in this category. Miscellaneous goods and services also decreased from 4.0% in January 2025 to 0.3% in February 2025.
Zero growth was also observed in insurance, financial services, and other services in this category. This along with other factors has contributed to the decline of headline inflation in the kingdom for February 2025.