Official data reported that the annual inflation rate in Saudi Arabia increased to 2.1 percent as of December, compared to 1.9 percent the same month, as housing rents continued to drive prices.
The latest report issued by the General Authority of Statistics indicated that prices of housing, water, electricity, gas, and other fuels increased year-on-year by 4.1 percent due to a surge in actual rent by 5.3 percent.
The inflation trend of Saudi Arabia generally falls in line with the International Monetary Fund projections published in October, expecting to witness inflation of approximately 2.1 percent in 2025 and slightly lower to 2 percent in 2026.
In its latest report, GASTAT said, “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.”
It states, “This increase was mainly driven by a rise in housing, water, electricity, gas, and other fuel prices by 4.1 percent food and beverage prices by 1.3 percent and transport prices by 1.5 percent.”
Therefore, the report shows that the prices of fresh, chilled, or frozen meat increased by 1.7 percent every year in December.
Expenditure on personal care and social protection, and other goods and services increased by 7 percent per annum, and the prices in the insurance and financial services division experienced an increase of 4.1 percent per annum due to a 6.6 percent rise in insurance costs.
The costs in the entertainment, sports, and culture division increased 2.4 percent year-on-year, reflecting a 3.9 percent rise in holiday deal prices. Education expenditure rose by 1.5 percent, with restaurant and hotel services costs increasing 0.9 percent throughout the year.
However, the GASTAT said that monthly, the CPI had increased slightly by 0.1 percent in December compared to November. The growth was largely supported by an increase of 0.2 percent in housing, water, electricity, gas, and other fuels.
The prices of food and beverages also rose by 0.1 percent, whereas the cost of personal care, social protection, and other goods and services went up by 0.7 percent.
GASTAT reported, “In contrast, the prices of clothing and footwear fell by 0.2 percent, transport by 0.1 percent, and insurance and financial services by 0.3 percent.” The prices of education services and tobacco remained stable in December.
In another report, GASTAT stated that in December, the Wholesale Price Index in Saudi Arabia had an annual growth of 3.1 percent. The growth was primarily as a result of a 5.7 percent upsurge in prices of other transportable goods, other than metal products, machinery, and equipment, and a 3.6 percent growth in the prices of agricultural products and fishery goods.
GASTAT added, “The prices of food products, beverages, tobacco, and textiles also rose by 0.2 percent, driven by a 0.7 percent rise in prices of grain mills, starch, and other food products.”
In contrast, prices of ores and minerals decreased 0.1 percent, reflecting a drop in stone and sand prices. The WPI rose by 1 percent in December on a monthly basis as prices of other transportable goods rose by 1.8 percent and agricultural and fishery products rose by 1.5 percent.
GASTAT indicates, “Both raw materials and metals, and food products, beverages, tobacco, and textiles divisions showed stable prices, with no notable changes recorded in December 2025.”
In a different report, GASTAT reported that there were significant changes in the average prices of goods and services in the Kingdom in December.
Lebanese peaches registered the highest month-on-month growth of 11.3 percent, followed by local cucumbers at 9.8 percent, Abu Sorra Egyptian oranges at 9.5 percent, and local corchorus at 8.9 percent.
Thus, local tomatoes recorded the highest monthly decrease at 21.4 percent, followed by Pakistani mandarins at 7.8 percent and imported tomatoes at 7.2 percent.
