Saudi Arabia Inflation Lowest in 11 Months

The annual inflation rate in Saudi Arabia rose to 2.1% in December from 1.9% in November, slightly below market expectations of 2.2%. Inflation accelerated in several categories, including personal care, social protection, and miscellaneous items (7.0% vs 6.6% in November), recreation, sport, and culture (2.4% vs 1.3%), and restaurants and accommodation services (0.9% vs -0.5%). Price growth also picked up for clothing and footwear (0.4% vs 0.3%) and information and communication (0.2% vs 0.1%), while furnishings and household equipment returned to positive territory (0.1% vs -0.3%). Meanwhile, inflation eased for housing, water, electricity, gas, and other fuels (4.1% vs 4.3%) and for insurance and financial services (4.1% vs 5.1%), while remaining unchanged for food and beverages (1.3%), tobacco (1.0%), health (0.2%), transport (1.5%), and education services (1.5%). On a monthly basis, consumer prices rose 0.1%, matching the pace of the previous period.

The annual inflation rate in Saudi Arabia eased to 1.9% in November 2025 from 2.1% in October, below the expected 2%, marking the lowest level since December 2024. Price growth slowed mainly for food and beverages (1.3% vs 1.5% in October), housing, water, electricity, gas, and other fuels (4.3% vs 4.5%), and transport (1.5% vs 1.6%). Inflation also notably moderated for recreation and culture (1.3% vs 2.4%) and insurance and financial services (5.1% vs 8.2%). Meanwhile, costs declined for furnishings, household equipment, and routine household maintenance (-0.3% vs -0.5%), as well as restaurants and accommodation services (-0.5% vs 1.1%). On the other hand, inflation picked up for tobacco (1% vs 0.9%), education services (1.5% vs 1.4%), and personal care, social protection, and miscellaneous items (6.6% vs 5.9%). On a monthly basis, consumer prices grew 0.1%, following a 0.3% gain in the previous period.

The annual inflation rate in Saudi Arabia stood at 2.2% in October 2025, unchanged from the previous month. Main upward pressures came from food and beverages (1.5% vs 1.1% in September) mainly driven by higher costs of fresh, chilled, or frozen meat (2.5% vs 0.6%). Price growth also picked up for insurance and financial services (8.2% vs 7.7%), and personal care, social protection and miscellaneous goods and services (5.9% vs 5.4%) led by a surge in other personal effects (19.9% vs 16.3%). In contrast, costs declined for furniture and household goods (-0.5% vs -0.6%) and information and communication (-0.2% vs -0.4%). Additionally, inflation moderated for housing, water, electricity, gas, and other fuels (4.5% vs 5.2%) amid a slower rent growth (5.7% vs 6.7%). On a monthly basis, consumer prices rose by 0.3% in October, rebounding from a 0.1% fall in the preceding period.