GASTAT Reports August Consumer Price Index Increase To 2.3% Using Updated Methodology

The General Authority for Statistics (GASTAT) has reported a 2.3% rise in the Consumer Price Index (CPI) for August 2025 compared to the same month last year. This increase is based on a newly updated methodology that aims to provide more accurate data on inflation rates. The revised approach offers enhanced flexibility to capture changes in spending habits and assess how price shifts in goods and services affect household consumption.

GASTAT's updated CPI methodology aligns with international standards, aiming to improve statistical products and indicators. This update is part of ongoing efforts to enhance data quality, providing policymakers with reliable information for shaping economic and social policies. These improvements contribute to sustainable development planning and support the achievement of Saudi Vision 2030 goals.

The new CPI methodology includes several key updates designed to better reflect actual inflation within Saudi Arabia's economy. These updates involve improved mechanisms for collecting price data, revising consumer basket weights, and diversifying data sources. The new weights are derived from the 2023 Household Income and Expenditure Survey, national accounts data on household consumption, the Ejar platform, and other administrative records.

Additionally, GASTAT has expanded geographical coverage using geospatial mapping techniques to refine sample design. This expansion increased the number of retail outlets surveyed from 32,000 to 82,000 and sample points from 8,700 to 14,000. The consumer basket now includes 582 items instead of the previous 490, reflecting updated consumption trends.

The number of cities covered by the CPI survey has risen from 16 to 23, enabling GASTAT to publish results for all administrative regions across the Kingdom. This broader coverage ensures a more comprehensive understanding of regional price movements and their impact on households.

GASTAT adopted the latest UN Classification of Individual Consumption by Purpose (COICOP 2018), incorporating additional levels for indicator calculations while maintaining alignment with the earlier COICOP 1999 version. This adoption ensures consistency in time series data and enhances flexibility in monitoring economic dynamics.

Supporting Economic Planning

The methodological update aims to provide policymakers with reliable data that supports decision-making processes and strengthens economic and social planning efforts. By offering a more accurate reflection of inflation rates, this update enhances GASTAT's ability to monitor price movements effectively.

The reference year for the index was updated from 2018 to 2023 to better capture current spending patterns. This change reflects GASTAT's commitment to aligning its methodologies with best global practices and international guidelines.

This comprehensive update underscores GASTAT's dedication to improving statistical accuracy and relevance in a rapidly changing economic landscape. By enhancing data collection methods and expanding geographical coverage, GASTAT ensures that its reports remain valuable tools for policymakers aiming at sustainable development goals.

With inputs from SPA