Saudi Arabia’s annual inflation rate rose slightly to 1.8 percent in July, with housing rents continuing to push prices higher across the Kingdom, according to official data.
The latest report from the General Authority for Statistics (GASTAT) showed that the country’s consumer price index increased 0.2 percent in July compared with the previous month. The rise was mainly seen in areas such as housing, transportation and restaurants.
Saudi Arabia continued to have one of the lowest inflation rates in the Gulf. Kuwait recorded annual inflation of 2.19 percent in June, while Qatar’s latest rate was 2.21 percent. Bahrain and Oman recorded inflation rates of 2.3 percent and 2.8 percent, respectively, during the same month.
The International Monetary Fund said in June that Saudi Arabia’s inflation is expected to average 2.2 percent in 2026. Higher shipping and insurance costs are expected to be partly offset by slower rent increases and government controls on the prices of some fuel and food products.
GASTAT said the annual inflation rate in July was mainly driven by a 4.2 percent increase in housing, water, electricity, gas and other fuel prices, a 1.5 percent rise in food and beverage prices, and a 1.4 percent increase in transportation prices.
The report also said actual housing rents increased 4.3 percent, pointing to continued demand for residential properties in the Kingdom.
Personal care and sport driving rise
Other major annual increases were recorded in personal care, social protection, and miscellaneous goods and services, which rose 2.9 percent in July. Recreation, sport and culture prices also increased 2.4 percent.
Meanwhile, prices for furnishings, household equipment and routine household maintenance fell 0.5 percent, while clothing and footwear prices dropped 0.4 percent.
Housing, water, electricity, gas and other fuels made the biggest contribution to the annual inflation rate, adding 0.8 percentage points.
Food and beverages contributed 0.3 percentage points, while transportation added 0.2 percentage points. Personal care, social protection, and miscellaneous goods and services also contributed 0.2 percentage points. The remaining categories together added 0.3 percentage points.
Monthly comparison
The consumer price index increased 0.2 percent in July from the previous month. Housing, water, electricity, gas and other fuels rose 0.9 percent, mainly because prices in the electricity, gas and other fuels group increased 7.1 percent.
Restaurants and accommodation services increased 0.5 percent, while recreation, sport and culture rose 0.4 percent. Transportation prices increased 0.2 percent.
Prices for personal care, social protection, and miscellaneous goods and services fell 1 percent. Furnishings, household equipment and routine household maintenance prices also declined slightly by 0.1 percent.
Wholesale Price Index
In a separate report, GASTAT said Saudi Arabia’s Wholesale Price Index increased 5 percent year on year in July.
The increase was mainly linked to higher prices for other transportable goods, excluding metal products, machinery and equipment, which rose 9.7 percent. Prices for metal products, machinery and equipment increased 1.5 percent.
Within the other transportable goods category, basic chemical prices jumped 66.7 percent, while refined petroleum product prices increased 3.9 percent.
In the metal products, machinery and equipment category, base metal prices rose 5.3 percent, while electrical machinery and apparatus prices increased 2.4 percent.
Agriculture and fishery products also contributed to the annual increase, rising 6.2 percent. Agricultural product prices increased 7.7 percent, while live animal and animal product prices rose 3.9 percent.
On the other hand, prices for food products, beverages, tobacco and textiles fell 0.6 percent. The decline was mainly caused by a 1.4 percent drop in grain mill, starch and other food product prices and a 5.8 percent decrease in beverage prices.
Ores and minerals prices fell slightly by 0.1 percent, mainly because stone and sand prices declined 0.1 percent.
On a monthly basis, the WPI remained unchanged in July. This was mainly due to a 1.8 percent increase in agriculture and fishery product prices, including a 2.7 percent rise in agricultural product prices.
Prices for metal products, machinery and equipment increased 0.1 percent. This included a 2 percent rise in radio, television and communication equipment and apparatus prices and a 0.5 percent increase in fabricated metal product prices.
Prices for food products, beverages, tobacco and textiles fell 0.8 percent from the previous month in July. Beverage prices dropped 7.3 percent, while prices for meat, fish, fruit, vegetables, oils and fats declined 0.4 percent.
Average prices
In another report, GASTAT highlighted changes in the average prices of goods and services across the Kingdom in July.
Local carrots recorded the biggest monthly increase at 7.4 percent, followed by furnished apartments at 6.7 percent, Abu Sorra Egyptian oranges at 6.3 percent and Pakistani mandarins at 5.4 percent.
On the other hand, local grapes recorded the largest monthly decline, falling 15.2 percent. Local figs followed with a 13.4 percent decrease, while local tomato prices fell 9.8 percent.
