Saudi Arabia Inflation Rate Hits 17-Month Low

Saudi Arabia’s annual inflation rate edged down to 1.7% in February 2026 from 1.8% in the prior month, marking the lowest level since September 2024. Price pressures eased for housing and utilities (4.1% vs 4.2% in January), insurance and financial services (1.0% vs 3.3%), recreation and culture (1.0% vs 2.3%), tobacco (0.4% vs 0.7%), education (1.4% vs 1.6%), and transport (1.4% vs 1.5%). Meanwhile, prices were flat for food and drinks (vs 0.2% previously), and clothing and footwear (vs a 0.5% gain in January). Simultaneously, prices fell further for furnishings and household equipment (-0.9% vs -0.3%). On the other hand, inflation rebounded slightly in health (0.1% vs -0.1%) and accelerated for personal care, social protection, and miscellaneous goods (8.2% vs 7.9%), restaurants and hotels (1.9% vs 1.0%), and communication (1.1% vs 0.3%). Monthly, consumer prices were unchanged, following a 0.2% increase in January, which had been the largest rise in three months.

The annual inflation rate in Saudi Arabia fell to 1.8% in January 2026 from 2.1% in the previous month, falling short of market expectations of 2.0% and marking the lowest reading since September 2024. Price growth slowed for insurance and financial services (3.3% vs 4.1% in December), recreation and culture (2.3% vs 2.4%), food and drinks (0.2% vs 1.3%), and tobacco (0.7% vs 1.0%). In addition, cost fell for furnishings and household equipment (-0.3% vs 0.1%) and health (-0.1% vs 0.2%). On the other hand, inflation held steady for transport (at 1.5%) while edged higher for housing, utilities (4.2% vs 4.1%), restaurants and accommodation (1.0% vs 0.9%), clothing (0.5% vs 0.4%), communication (0.3% vs 0.2%), and education (1.6% vs 1.5%). Meanwhile, prices of personal care, social protection, and miscellaneous items accelerated (7.9% vs 7.0%). Monthly consumer prices rose 0.2%, following 0.1% increases in November and December and pointing to the highest level in three 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.