Official data reported that Saudi Arabia’s inflation eased to 1.8 percent in January, indicating contained price pressures despite housing rents being the greatest contributor to consumer costs.
The General Authority for Statistics noted that average prices of housing, water, electricity, gas, and other fuels increased by 4.2 percent in January, as compared to a rise in actual residential rents by 5.2 percent.
The inflation trend in Saudi Arabia is generally in line with the forecasts of the International Monetary Fund, which indicated in October that the Kingdom is projected to maintain an annual inflation rate of about 2 percent in 2026.
In its latest report, GASTAT said, “The Consumer Price Index in Saudi Arabia recorded an annual increase of 1.8 percent in January 2026, compared to the same month of the previous year.”
It reported, “This increase was mainly driven by a rise in housing, water, electricity, gas, and other fuel prices by 4.2 percent, transport prices by 1.5 percent, and restaurant and accommodation services prices by 1 percent.”
The report stated that the expenses for personal care, social protection, and miscellaneous goods and services surged by 7.9 percent year-on-year in January, while insurance and financial services costs rose 3.3 percent.
However, recreation prices, sport and culture prices followed suit and went up by 2.3 percent due to a 3.7 percent increase in package holiday expenses. The education service prices up 1.6 percent, representing higher secondary education costs.
Food and beverage prices are 0.2 percent higher year-on-year. The prices for furnishings, household equipment, and routine household maintenance dropped 0.3 percent in January, while healthcare expenses declined 0.1 percent over the same period.
Meanwhile, on a month-on-month basis, Saudi Arabia’s CPI rose by 0.2 percent in January from December. Housing, water, electricity, gas, and other energy went up 0.5 percent on a month-on-month and this was once again due to increased residential rents.
Transport prices increased by 0.2 percent, and restaurant and accommodation services increased by 1 percent. Prices of food and beverages decreased by 0.6 percent in the month, and information and communication costs declined by 0.1 percent. Education, healthcare, furnishings, and tobacco prices were largely unchanged.
In another report, GASTAT indicated that the Wholesale Price Index in Saudi Arabia increased by 2.9 percent in January 2025 as compared to January 2025 in the same year.
The growth was attributed to higher prices of other transportable goods, other than metal products, machinery and equipment, that was increasing 4.9 percent, and agricultural and fishery products, which increased by 4.2 percent.
Metal products, machinery, and equipment prices advanced 1.2 percent year-on-year in January, whereas food products, beverages, tobacco, and textiles advanced 0.3 percent. Ores and mineral prices fell 0.1 percent.
The WPI of the Kingdom grew 1.5 percent in comparison with December, which was boosted by 3.4 percent in other transportable goods without metal products, machinery, and equipment.
Month-on-month, agricultural and fishery product prices rose 0.5 percent, with food products, beverages, tobacco, and textiles registering a modest 0.2 percent rise.
GASTAT highlighted notable changes in average prices of goods and services across Saudi Arabia in January, in another report. Local watermelon reached the biggest month-on-month surge at 7.5 percent, followed by local black eggplants at 6.5 percent, local okra at 6.3 percent, and Indian pomegranates at 6.1 percent.
Thus, several items posted sharp price declines. Abu Sorra Egyptian oranges gave the highest decline of 28.2 percent, with Pakistani mandarins and green beans coming in at 21.3 percent and 12.3 percent, respectively.
