Saudi Arabia Inflation Rate Steady at 1.8%

The annual inflation rate in Saudi Arabia rose by 1.8% in July 2026, matching the pace from the previous two months and in line with market expectations. Prices increased for food and non-alcoholic beverages (1.5% vs 1.4% in June), housing and utilities (4.2% vs 3.5%), restaurants and hotels (2.0% vs 1.5%), and education (1.2% vs 1.1%). At the same time, costs remained unchanged for information and communication (at 0.6%) and clothing and footwear (at -0.4%), while prices fell at a softer pace for furnishings and household equipment (-0.5% vs -0.6%). In contrast, inflation moderated for tobacco (0.4% vs 0.5%), recreation and culture (2.4% vs 2.5%), insurance and financial services (1.4% vs 2.1%), transportation (1.4% vs 1.7%), health (0.3% vs 0.4%), and miscellaneous goods and services (2.9% vs 3.8%). On a monthly basis, consumer prices grew by 0.2%, unchanged from the previous three months and exceeding market expectations of a 0.1% increase.

The annual inflation rate in Saudi Arabia held steady at 1.8% in June 2026, unchanged from May and in line with market expectations. Price growth accelerated for food and beverages (1.4% vs 0.7% in May) and transportation (1.7% vs 1.5%). Inflation also edged up for tobacco (0.5% vs 0.4%) and health (0.4% vs 0.2%). On the other hand, costs rose at a slower pace for housing and utilities (3.5% vs 3.7%), recreation, sport and culture (2.5% vs 2.6%), and restaurants and accommodation services (1.5% vs 1.7%). Inflation also moderated for insurance and financial services (2.1% vs 2.2%), personal care and miscellaneous goods and services (3.8% vs 5.6%), and education services (1.1% vs 1.4%). Meanwhile, deflation deepened for clothing and footwear (-0.4% vs -0.1%), while inflation was unchanged for information and communication (0.6%). On a monthly basis, consumer prices rose 0.2% in June, matching the increase recorded in the previous period.

The annual inflation rate in Saudi Arabia edged up to 1.8% in May 2026 from 1.7% in the previous month, matching market expectations. Costs increased in food and beverages (0.7% vs 0.6% in April), transportation (1.5% vs 1%), recreation and culture (2.6% vs 1.8%), and restaurants and hotels (1.7% vs 1%). In addition, deflation slowed in clothing and footwear (-0.1% vs -0.3%), while price growth remained steady in tobacco (at 0.4%) and education (at 1.4%). On the other hand, costs moderated in housing utilities (3.7% vs 3.8%), health (0.2% vs 0.4%), information and communication (0.6% vs 1.3%), insurance and financial services (2.2% vs 2.3%), and miscellaneous goods and services (5.6% vs 6.3%). On a monthly basis, consumer prices rose by 0.2% in May, unchanged from the preceding period and matching market expectations.