The inflation rate in Saudi Arabia between 1998 and today has been 69.05%, which translates into a total increase of ﷼69.05. This means that 100 riyal in 1998 are equivalent to 169.05 riyal in 2023. In other words, the purchasing power of ﷼100 in 1998 equals ﷼169.05 today. The average annual inflation rate between these periods has been 2.12%.
The following chart depicts the equivalence of ﷼100 due to compound inflation and CPI changes. All values are equivalent in terms of purchasing power, which means that for each year the same goods or services could be bought with the indicated amount of money.
All calculations are performed in the local currency (SAR) and using 6 decimal digits. Results show only up to 2 decimal digits to favour readability. Inflation data is provided by governments and international institutions on a monthly basis. Today's values were extrapolated from the latest 12-month rolling average official data.
The following table contains relevant indicators:
|Cumulative inflation 1998-2022||64.55%|
|Cumulative inflation 1998-today||69.05%|
|Avg. Annual inflation 1998-2022||2.1%|
|CPI 2023-08 (latest official data)||113.77|
There are several ways to calculate the time value of money. Depending on the data available, results can be obtained by using the Consumer Price Index (CPI) formula or the compound interest formula.
When we have both the start and end years, we can use the following formula:
To obtain the values equivalent in buying power between 1998 and 2022, use the corresponding CPI values:
To obtain the equivalent value today (present value), plug in the CPI for today, which is estimated as 113.96:
Given that money changes with time as a result of an inflation rate that acts as compound interest, we can use the following formula: FV = PV × (1 + i)n, where:
In this case, the future value represents the final amount obtained after applying the inflation rate to our initial value. In other words, it indicates how much are ﷼100 worth today. There are 24 years between 1998 and 2022 and the average inflation rate was 2.0968%. Therefore, we can resolve the formula like this:
|Initial Value||Equivalent value|
|﷼1 riyal in 1998||→||﷼1.65 riyal in 2022|
|﷼5 riyal in 1998||→||﷼8.23 riyal in 2022|
|﷼10 riyal in 1998||→||﷼16.45 riyal in 2022|
|﷼50 riyal in 1998||→||﷼82.27 riyal in 2022|
|﷼100 riyal in 1998||→||﷼164.55 riyal in 2022|
|﷼500 riyal in 1998||→||﷼822.74 riyal in 2022|
|﷼1,000 riyal in 1998||→||﷼1,645.48 riyal in 2022|
|﷼5,000 riyal in 1998||→||﷼8,227.39 riyal in 2022|
|﷼10,000 riyal in 1998||→||﷼16,454.78 riyal in 2022|
|﷼50,000 riyal in 1998||→||﷼82,273.88 riyal in 2022|
|﷼100,000 riyal in 1998||→||﷼164,547.76 riyal in 2022|
|﷼500,000 riyal in 1998||→||﷼822,738.82 riyal in 2022|
|﷼1,000,000 riyal in 1998||→||﷼1,645,477.65 riyal in 2022|
|Cumulative inflation From 1998||69.05%|
|Avg. annual inflation From 1998||2.12%|
All available years
Today's value of saudi riyals by year: