Saudi Arabia’s Annual Inflation Rises to 2.1% in December, Driven by Housing Costs

Saudi Arabia’s annual inflation rate rose to 2.1 percent in December, up from 1.9 percent in November, as housing rents continued to push price gains, official data showed. The General Authority for Statistics (GASTAT) reported that prices for housing, water, electricity, gas, and other fuels increased 4.1 percent year-on-year in December, with actual rents rising 5.3 percent.

“The CPI in Saudi Arabia recorded an annual increase of 2.1 percent in December 2025 compared to the same month of the previous year, December 2024,” GASTAT said in its report. It added that the rise was largely driven by housing and utility costs, food and beverages, and transport expenses. Food prices climbed 1.3 percent, transport costs rose 1.5 percent, and fresh, chilled, or frozen meat prices increased 1.7 percent over the year.

Spending on personal care, social protection, and other goods and services grew by 7 percent, while insurance and financial services costs rose 4.1 percent, reflecting a 6.6 percent increase in insurance fees. Prices in the entertainment, sports, and culture category increased 2.4 percent, with holiday deals up 3.9 percent, while education expenses grew 1.5 percent and restaurant and hotel services costs rose 0.9 percent.

On a monthly basis, the consumer price index edged up 0.1 percent in December compared with November. Housing and utilities rose 0.2 percent, food and beverage prices increased 0.1 percent, and personal care and social protection expenses rose 0.7 percent. Clothing and footwear fell 0.2 percent, transport dropped 0.1 percent, and insurance and financial services declined 0.3 percent. Prices for education services and tobacco remained stable.

In a separate report, GASTAT said the Wholesale Price Index (WPI) recorded a 3.1 percent year-on-year increase in December. The rise was driven by a 5.7 percent increase in prices of other transportable goods, excluding metals, machinery, and equipment, and a 3.6 percent increase in agricultural and fishery products. Prices of food products, beverages, tobacco, and textiles grew 0.2 percent, led by a 0.7 percent increase in grain mills, starch, and other food products. Ores and minerals declined 0.1 percent, reflecting lower stone and sand prices. Monthly WPI rose 1 percent in December, driven by transportable goods and agricultural products, while raw materials, metals, and other food products remained stable.

GASTAT also highlighted notable month-on-month price movements. Lebanese peaches rose 11.3 percent, local cucumbers 9.8 percent, Abu Sorra Egyptian oranges 9.5 percent, and local corchorus 8.9 percent. Local tomatoes saw the largest decline at 21.4 percent, followed by Pakistani mandarins at 7.8 percent and imported tomatoes at 7.2 percent.

Saudi Arabia’s inflation trajectory aligns with International Monetary Fund projections from October, which forecast 2.1 percent inflation in 2025, easing slightly to 2 percent in 2026.