Saudi Arabia Inflation Rate at 6-Month Low of 1.7%

The annual inflation rate in Saudi Arabia slowed to 1.7% in October 2026, down from September’s nine-month high of 1.9%. It was the softest increase in consumer prices since April, as costs of food and beverages rose at the slowest pace in five months (1.1% vs 1.4%) and inflation in housing and utilities eased (3.5% v 3.6% in September), while transportation inflation remained unchanged at 2.3%. Inflation also moderated for restaurants and accommodation services (1.8% vs. 1.9%) and personal care, social protection and miscellaneous goods (1.0% vs. 3.3%). Meanwhile, inflation accelerated for recreation, sport and culture (2.7% vs 2.5%) and insurance and financial services (3.5% vs 2.0%). By contrast, prices continued to decline for clothing and footwear (-0.2% vs -0.4%) and furnishings, household equipment and maintenance (-0.5% vs -0.5%). On a monthly basis, consumer prices edged up 0.1% in October, after being flat in the previous month.

Consumer prices in Saudi Arabia rose by 1.9% year-on-year in September 2026, falling short of market expectations for a 2.1% gain but up from a 1.8% increase in August. The latest figure also marked the fastest rise since December last year, driven primarily by higher costs for food and beverages (at 1.4%), housing and utilities (3.6% vs 3.9% in August), and transportation (2.3% vs 2.0%). Inflation also continued to increase for recreation, sport and culture (2.5% vs 2.8%), restaurants and accommodation services (1.9% vs 1.4%), insurance and financial services (2.0% vs 1.7%), and personal care, social protection and miscellaneous goods (3.3% vs 3.5%). On the other hand, prices declined for clothing and footwear (-0.4% vs -0.5%) and furnishings, household equipment and maintenance (-0.5% vs -0.6%). On a monthly basis, consumer prices remained unchanged in September, missing market forecasts for a 0.1% rise and following a 0.1% gain in the preceding period.

The annual inflation rate in Saudi Arabia stood at 1.8% in August 2026, unchanged from the previous three months and in line with market expectations. Prices mainly increased for transport (2.0% vs 1.4% in July), recreation, sport and culture (2.8% vs 2.4%), insurance and financial services (1.7% vs 1.4%), and personal care, social protection and miscellaneous (3.5% vs 2.9%). Inflation also continued to rise for food and beverages (1.4% vs 1.5%), housing and utilities (3.9% vs 4.2%), and restaurants and accommodation services (1.4% vs 2.0%). On the other hand, costs declined at a faster pace for clothing and footwear (-0.5% vs -0.4%) and furnishings, household equipment and maintenance (-0.6% vs -0.5%). On a monthly basis, consumer prices grew by 0.1% in August, marking the softest rise since December and slowing from a 0.2% gain in the preceding period.