GASTAT: August Consumer Price Index Reaches 2.3% under Updated Methodology

The General Authority for Statistics (GASTAT) announced today that the Consumer Price Index (CPI) for August 2025 recorded a 2.3% increase compared to the same month last year, based on the updated methodology of the index.
 The revised methodology provides more comprehensive, modern, and accurate data on inflation rates, offering greater flexibility to capture shifts in spending patterns and measure the impact of price movements of goods and services in retail markets on household consumption.
 The update is part of GASTAT’s ongoing efforts to improve statistical products and indicators, enhance their quality, and align them with international standards. The methodology is designed to provide policymakers with reliable data to shape economic and social policies that contribute to sustainable development planning and the achievement of Saudi Vision 2030 targets.
 According to GASTAT, the updated CPI methodology was developed to better reflect actual inflation in the Saudi economy, in line with best global practices and international guidelines. Key updates include improved mechanisms for collecting price data, revised consumer basket weights, and diversification of data sources. The new weights are based on the 2023 Household Income and Expenditure Survey, national accounts data on household consumption, the Ejar platform, and other administrative records. Additionally, the reference year of the index was updated from 2018 to 2023 to better reflect current spending patterns.
 Geographical coverage has also been expanded using geospatial mapping to improve sample design, increasing the number of retail outlets surveyed from 32,000 to 82,000 and sample points from 8,700 to 14,000. The consumer basket was expanded from 490 to 582 items based on updated consumption trends, while the number of cities covered rose from 16 to 23, enabling GASTAT to publish results for all administrative regions of the Kingdom.
 The authority also 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.
 GASTAT emphasized that this methodological update ensures more consistent and flexible time series, better reflecting the dynamic Saudi economy and enhancing the ability to monitor price movements, support decision-making, and strengthen economic and social planning.