DUBAI - Saudi Arabia's annual inflation rate rose to 1.8% in February from 1.6% the previous month driven by increases in housing rents, government data showed on Thursday.

Prices in the subcategory of housing, water, electricity, gas and other fuels climbed 8.5% from a year earlier, according to the General Authority for Statistics.

Housing rents alone surged 10%, faster than the 9.3% gain for January. They account for roughly a fifth of the weighting within the consumer price basket.

Prices of food and beverages increased 1.3% in February year on year ahead of the holy fasting month of Ramadan which began on March 11. Vegetable prices jumped 7.6%.

While prices for restaurants and hotels as well as recreation and culture also rose, transport prices declined 0.9% due to a decrease in car sales, while clothing and footwear prices fell 4%.

Inflation has remained relatively low in Saudi Arabia compared to global levels, with government policies limiting the impact of international price increases. The impact of shipping disruptions in the Red Sea has so far been small.

(Reporting by Rachna Uppal; Editing by Edwina Gibbs)