Saudi Arabia’s annual inflation rate fell slightly to 1.9 per cent in December from 2 per cent in November, according to government data.

Inflation in Saudi Arabia has hovered between 1.5 per cent and 2 per cent for most of the year, with housing rents the main driver of price pressures.

Rents for housing increased by 10.6 per cent in December, with villa rental prices rising by 9.9 per cent, the General Authority for Statistics said, which was the primary reason for prices for the combined housing, water, electricity, gas and other fuels category climbing by 8.9 per cent.

Inflation in the kingdom has remained relatively low compared with global levels, and the International Monetary Fund expects Saudi inflation to remain stable at about 2 per cent over the medium term.