Housing will keep Saudi Arabia's inflation rising during the first quarter but a stabilisation in food prices will keep it below the 1.5% recorded in the previous quarter, the kingdom's central bank said on Sunday.

With the exception of sugar, the Saudi Arabian Monetary Agency expects a stabilisation in food prices, which account for 26% in the the weighting of the cost of living index used to track Saudi inflation.

The renovation, home rent, fuel and water group weighs 18% in living index.