Saudi Arabia’s Inflation Slows to 1.9% in November Amid Rising Housing Costs

Saudi Arabia’s annual inflation rate eased to 1.9 percent in November, down from 2.2 percent in the previous two months, as softer price pressures in areas outside housing offset continued rent increases. The General Authority for Statistics (GASTAT) reported that consumer prices rose 1.9 percent compared with November 2024, marking the first time the rate fell below 2 percent since mid-2025, following a peak of 2.3 percent in August.

Housing costs remained the largest driver of inflation, with actual rents for primary residences climbing 5.4 percent. GASTAT noted that increases in housing, water, electricity, gas, and other fuel prices contributed 4.3 percent to overall inflation, while food and beverage prices rose by 1.3 percent and transport costs by 1.5 percent.

The report highlighted specific price movements across sectors. Fresh, chilled, and frozen meat prices rose 1.6 percent year on year. Personal care, social protection, and other goods and services increased by 6.6 percent. Insurance and financial services recorded a 5.1 percent rise, led by an 8.4 percent increase in insurance costs. Expenses related to entertainment, sports, and culture grew by 1.3 percent, mainly due to a 2.1 percent rise in holiday package prices.

Some sectors recorded declines. Furniture, household equipment, and routine household maintenance fell by 0.3 percent, driven by a 3.3 percent decrease in furniture, furnishings, and carpet prices. Similarly, costs for restaurants and accommodation services dropped by 0.5 percent.

On a monthly basis, the Consumer Price Index (CPI) increased marginally by 0.1 percent from October. Housing, water, electricity, gas, and other fuels rose by 0.3 percent, while transport and personal care services also increased by 0.3 percent. Food and beverage prices, healthcare, and entertainment costs saw slight declines of up to 0.2 percent. Prices for furniture, clothing, footwear, and education services remained stable.

GASTAT also reported that the Wholesale Price Index (WPI) rose 2.3 percent year on year in November, driven by higher prices for transportable goods, agricultural, and fishery products. Food, beverages, tobacco, and textiles increased by 0.5 percent, while ores and minerals declined by 0.8 percent. On a monthly basis, the WPI fell 0.3 percent, reflecting decreases in transportable goods and agricultural and fishery products.

Average price trends showed significant changes across individual items. Lebanese peaches led month-on-month increases at 5 percent, followed by local corchorus at 4.7 percent, hotel accommodation at 4.6 percent, Pakistani mandarins at 4.3 percent, and white cabbage at 4 percent. Local zucchini recorded the steepest decline at 15.3 percent, followed by local tomatoes at 11.9 percent and Indian pomegranates at 8.5 percent.

Saudi Arabia’s inflation path aligns closely with International Monetary Fund forecasts, which projected an annual rate of 2.1 percent in 2025 and 2 percent in 2026.