RIYADH: Saudi Arabia’s inflation rate accelerated to 2.3 percent in March, driven by higher costs for housing rents, food, and personal goods, official data showed.

The increase was notably influenced by the housing segment’s 25.5 percent weight in the Consumer Price Index.

According to the General Authority for Statistics, the rise was mainly due to a 6.9 percent increase in the housing, water, electricity, gas, and other fuels category. This was largely fueled by an 8.2 percent jump in actual housing rents, with apartment rents surging 11.9 percent.

Food and beverage prices also contributed to the annual uptick, climbing 2 percent, primarily due to a 3.8 percent increase in meat and poultry costs. Meanwhile, the personal goods and services category rose 3.9 percent, driven by a sharp 26.2 percent spike in the prices of jewelry, watches, and precious antiques.

Other contributing factors included the restaurants and hotels segment, which rose 1.3 percent, largely due to a 3.3 percent increase in hotel and furnished apartment service prices. Education costs went up by 1.1 percent, with tertiary education fees rising 4.3 percent.

In contrast, transport prices fell 0.8 percent, driven by a 1.5 percent decline in vehicle purchase costs. The furnishings and household equipment category dropped 2.6 percent, while clothing and footwear prices declined 0.8 percent, impacted by a 1.9 percent drop in ready-made clothing.

On a monthly basis, the CPI increased by 0.3 percent in March compared to February. This was attributed to a 0.5 percent rise in the housing, water, electricity, gas, and other fuels segment, driven by a 0.6 percent increase in housing rents.

The food and beverage group also edged up by 0.3 percent month on month, as vegetable prices rose 2 percent. Other notable monthly increases included personal goods and services at 0.4 percent, restaurants and hotels at 0.5 percent, and recreation and culture at 0.6 percent, as well as education at 0.7 percent, clothing and footwear at 0.3 percent, and communication at 0.1 percent. 

The report also noted a 0.9 percent monthly decline in furnishings and household equipment, while prices in the transport, health, and tobacco categories showed no significant change.

Wholesale price index

In a separate report, GASTAT noted that Saudi Arabia’s Wholesale Price Index increased 1.5 percent year on year in March, driven by a 3.2 percent rise in the prices of other transportable goods and a 3.6 percent increase in agriculture and fishery products.

Food products, beverages, tobacco, and textiles edged up 0.1 percent annually, supported by a 2.1 percent rise in grain mills, starch, and other food items, as well as a 1.2 percent increase in leather and leather product prices, including footwear.

By contrast, prices for metal products, machinery, and equipment fell 0.2 percent, driven by a 3.5 percent drop in general-purpose machinery and a 5.5 percent decline in radio, television, and communication equipment costs.

Ores and minerals recorded a 1.9 percent year-on-year decrease due to falling prices for stone and sand.

On a monthly basis, the WPI rose 0.4 percent in March compared to February, led by a 0.4 percent increase in the prices of metal products, machinery, and equipment.

This was primarily driven by a 2.9 percent rise in fabricated metal products and a 0.6 percent increase in electrical machinery and apparatus.  

The same rate of increase was recorded in other transportable goods, while food-related categories edged up 0.2 percent, driven mainly by a 0.5 percent rise in the prices of grain mills, starch, and other food products, along with a 0.1 percent increase in prices of meat, fish, fruits, vegetables, oils, and fats. 

Agriculture and fishery product prices inched up 0.1 percent, while the ores and minerals segment remained stable with no significant change.

GDANSK/BENGALURU: Big Tech and auto shares rose after the US removed smartphones and other electronics from its tariffs on China over the weekend, and after President Donald Trump added new wrinkles into his vacillating trade policy on Monday by suggesting he might grant exemptions on auto-related levies already in place.

Trump’s aggressive tariffs, which would have raised the rate consumers and businesses would have to pay for imported goods by roughly 25 percent, sparked a selloff in US assets, including stocks, the dollar and Treasury bonds. The market rebounded on Monday, but the broad-market S&P 500 index is still down about 8 percent so far this year.

The shifting stances caused investors to question the safe-haven status that America has long enjoyed and sapped both business and consumer confidence. The shock response forced the White House to backtrack, but Trump over the weekend insisted more levies were in store.

Speaking on Monday at the White House, Trump said he was considering a modification to the 25 percent tariffs imposed on foreign auto and auto parts imports from Mexico, Canada and other places. Those tariffs could raise the costs of a car by thousands of dollars, and Trump said car companies “need a little bit of time because they’re going to make ‘em here.”

US automakers developed a highly integrated supply chain that involves sending vehicles in various stages of completion across the borders several times after the passage of the North American Free Trade Agreement that was renegotiated during Trump’s first term. Shares of General Motors and Ford Motor closed 3.5 percent and 4.1 percent higher, respectively, on Monday.

“We share the President’s goal to increase American automotive production, and we appreciate the ongoing dialogue with the Administration. There is increasing awareness that broad tariffs on parts could undermine our shared goal of building a thriving and growing American auto industry, and that many of these supply chain transitions will take time,” said Matt Blunt, head of the American Automotive Policy Council representing Ford, GM and Stellantis, in a statement on Monday.

This weekend’s exemptions suggest the White House was becoming more aware of the pain that tariffs had in store for inflation-weary consumers, especially on popular products such as smartphones, laptops and other electronic devices. However, his promise of more tariffs on other key sectors like semiconductors as soon as next week leaves business in a state of flux. Monday afternoon, the White House said it had launched investigations into whether imports of pharmaceuticals and semiconductors threaten national security, which could be a precursor to slapping tariffs on those products.

“Not only is the scope of the tariff globally hard to grasp, but the uncertainty means businesses will have little confidence in their planning,” said economists at Morgan Stanley on Monday.

Trump and other administration officials, including Commerce Secretary Howard Lutnick, have said tariffs are necessary for boosting American manufacturing, and are critical to the White House's tax plans.

However, the tax on imports — which BlackRock estimated on Monday now comes to about 20 percent following the pullback on tariffs on tech imports — has undermined business and consumer confidence. Luxury goods maker LVMH reported a drop in US sales in the most recent quarter, while company executives said they may have “some capacity” to boost product — though its facilities in the US have faced notable problems.

“Prolonged uncertainty raises the risk of recession. It may drag on corporate investment and delay longer-term commitments,” BlackRock wrote, adding that the risk of a short-term accident had eased due to the pullback on tariffs.

Big Tech shares slumped in the past two weeks as tit-for-tat tariffs between Washington and Beijing stoked fears of higher costs, softer consumer demand and the worst supply-chain disruption since the COVID-19 pandemic. Apple rose 2.2 percent on Monday after a 9 percent drop in the past two weeks. Its flagship product, the iPhone — primarily made in China and imported into the US — was at risk of significant price hikes if substantial tariffs persisted, analysts warned.

Trump has maintained a hefty 145 percent tariff on China, including the 20 percent tariffs imposed in February related to fentanyl.

The exemptions cover 20 categories, including computers and laptops, as well as semiconductor devices, memory chips and flat panel displays. Analysts broadly said that the exemptions give companies more time to plan for where tariffs settle out.

“The removal of the worst-case scenario is an element of support (at least temporarily) for the sector,” analyst Alberto Gegra of Equita said.

Other consumer-facing companies including computer hardware makers HP and Dell Technologies rose 2.6 percent and 4 percent, respectively, while chip giant Nvidia edged lower. Nvidia on Monday said it would boost U.S. spending on facilities for AI development — which Trump attributed to the tariff threat.

European and Asian chip stocks also advanced, including major Asian suppliers to companies such as Apple. Foxconn, the largest iPhone assembler, gained 3%, contract laptop maker Quanta rose 5.8 percent and Inventec, which makes AI servers, rose 4.1 percent.