Saudi Arabia's annual inflation rate eased for a third month in August, its weakest pace in over a year, to 2% from 2.3% the previous month, government data showed on Thursday.

Lower prices for clothing and footwear, and furnishings and household equipment offset higher housing rents which rose 10.8% in August, General Authority for Statistics said.

Food and beverages prices ticked up by 0.4%.  

Compared to July 2023, consumer prices remained stable in August with a mere 0.03% increase.

The London-based consultancy Capital Economics said this was the weakest pace of inflation in over a year.

"Looking ahead, we think that the headline inflation rate will continue to ease over the remainder of this year to 1.0-1.5% YoY and will hover around this rate well into 2024," it added in a note.

(Reporting by Brinda Darasha; editing by Seban Scaria)