Saudi Arabia’s Inflation Slows to 1.7% in February as Food Prices Remain Stable

Saudi Arabia’s annual inflation rate eased to 1.7 percent in February, marking the lowest level recorded in a year as stable food prices helped offset increases in housing and service costs.

According to data released by General Authority for Statistics, the consumer price index slowed slightly from 1.8 percent in January to 1.7 percent year on year in February. The rate is the same level recorded in February 2025, indicating relatively steady price growth in the Kingdom.

The country’s inflation trend broadly aligns with expectations outlined by the International Monetary Fund, which projected last year that Saudi Arabia’s inflation would remain close to 2 percent in 2026.

The statistics authority said the overall increase in prices was mainly driven by higher housing-related costs. “This increase was mainly driven by a rise in housing, water, electricity, gas, and other fuel prices by 4.1 percent, transport prices by 1.4 percent, and prices of restaurant and accommodation services by 1.9 percent,” the agency said in its report.

Housing expenses continued to exert the strongest upward pressure on the index. Prices in the housing, water, electricity, gas and fuel category rose 4.1 percent in February compared with the same month last year. The increase was largely linked to a 5.1 percent rise in actual housing rents.

Transportation costs also moved higher, climbing 1.4 percent over the year. This rise was supported by a 5.6 percent increase in passenger transport services. Meanwhile, the restaurant and accommodation services sector saw prices grow by 1.9 percent, reflecting higher accommodation costs.

The personal care, social protection and miscellaneous goods category recorded the sharpest increase, rising 8.2 percent year on year. The jump was mainly due to a surge in prices for other personal effects, particularly jewelry and watches, which rose by 29 percent.

Insurance and financial services prices increased by 1 percent, supported by a 1.3 percent rise in insurance costs. Recreation, sport and culture prices rose 1.8 percent as package holiday prices climbed by 2.6 percent. Education services recorded a 1.4 percent increase, driven largely by higher secondary education fees.

Prices in the information and communications category edged up 1.1 percent during the period.

Some sectors recorded declines. Furnishings, household equipment and routine maintenance fell 0.9 percent, largely due to a 3.4 percent drop in furniture and carpet prices. Food and beverage prices, as well as clothing and footwear, remained broadly stable.

On a monthly basis, the consumer price index showed little change compared with January. Housing rents increased slightly, pushing the housing category higher by 0.3 percent. Prices also rose in transport, restaurants and accommodation services, personal care items, recreation activities and health services.

At the same time, food and beverage prices fell 0.5 percent during the month, while clothing, household furnishings and insurance services also posted small declines.

The latest figures highlight a relatively moderate inflation environment in Saudi Arabia despite ongoing pressures from housing costs and service-sector prices.