Saudi Arabia’s Inflation Rises to 1.8% in July as Housing Costs Continue to Climb

Saudi Arabia’s annual inflation rate rose to 1.8 percent in July, with housing costs remaining the main source of upward pressure on consumer prices, according to official data.

The General Authority for Statistics said the Consumer Price Index increased 0.2 percent in July compared with the previous month. Price increases were recorded across several categories, including housing, transport, restaurants and accommodation services.

Housing, water, electricity, gas and other fuels recorded an annual increase of 4.2 percent, making the category the largest contributor to overall inflation. Actual housing rents increased 4.3 percent, reflecting continued demand for residential properties.

Food and beverage prices rose 1.5 percent year on year, while transport costs increased 1.4 percent. Personal care, social protection and miscellaneous goods and services prices climbed 2.9 percent, while recreation, sport and culture prices increased 2.4 percent.

Housing-related costs contributed 0.8 percentage points to the annual inflation rate. Food and beverages added 0.3 percentage points, transport contributed 0.2 percentage points and personal care and related services added another 0.2 percentage points.

Some categories recorded price declines. Furnishings, household equipment and routine household maintenance prices fell 0.5 percent, while clothing and footwear prices declined 0.4 percent.

On a monthly basis, housing, water, electricity, gas and other fuels increased 0.9 percent. The rise was mainly linked to a 7.1 percent increase in electricity, gas and other fuel prices. Restaurant and accommodation services rose 0.5 percent, recreation, sport and culture increased 0.4 percent and transport prices advanced 0.2 percent.

Saudi Arabia’s inflation rate remained relatively low compared with several other Gulf economies. Kuwait recorded annual inflation of 2.19 percent in June, while Qatar’s latest reading stood at 2.21 percent. Bahrain and Oman reported inflation rates of 2.3 percent and 2.8 percent, respectively.

The International Monetary Fund expects Saudi Arabia’s inflation to average 2.2 percent in 2026. Higher shipping and insurance costs are expected to be partly balanced by slower rent growth and government controls on selected fuel and food prices.

Separate data from GASTAT showed that Saudi Arabia’s Wholesale Price Index increased 5 percent year on year in July. Prices of other transportable goods rose 9.7 percent, while metal products, machinery and equipment increased 1.5 percent. Agriculture and fishery products climbed 6.2 percent.

Basic chemical prices recorded a sharp 66.7 percent increase, while refined petroleum products rose 3.9 percent. On a monthly basis, the Wholesale Price Index remained unchanged.

GASTAT also reported notable changes in individual goods. Local carrots recorded the largest monthly price increase at 7.4 percent, while local grapes posted the biggest decline, falling 15.2 percent.