Saudi Arabia Macroeconomic Developments
- Saudi Arabia’s inflation rose to 3.1 percent in September, driven mainly by higher food prices, rents, and the rising cost of utilities, according to the General Authority for Statistics. Compared to the previous month, the Consumer Price Index (CPI) for September was marginally higher, up 0.3 percent. Food and beverage prices rose 4.3 percent in September, while housing rents were 3.6 percent higher, pushing the overall increase in housing, water, electricity, gas and other fuels to 3.2 percent.
- Saudi Arabia’s foreign reserve assets recorded a jump of SAR40.8 billion ($10.9 billion) during the month of September 2022, reaching SAR1.76 trillion ($468 billion), compared to August 2022, according to the Saudi Central Bank (SAMA). The value of foreign currency reserves, which represents about 95 percent of total assets, increased by one percent last month, reaching SAR1.67 trillion ($444 billion). The special drawing rights registered a decrease of nine percent while the value of the reserves with the International Monetary Fund registered a decrease of three percent.
- Industrial production in Saudi Arabia increased by 16.8 percent YoY in August of 2022, the smallest rise in seven months. Mining and quarrying grew by 15.5 percent as Saudi Arabia increased its oil production to its highest level by more than 11 million barrels per day. Manufacturing activity expanded by 22 percent and electricity and gas supplies rose by 11.3 percent. Industrial production increased by 2.9 percent MoM in August.