14/08/2026 02:30 AST
Saudi Arabia's annual inflation rate edged up to 1.8 percent in July, with housing rents continuing to drive price gains in the Kingdom, official data showed.
According to the latest report by the General Authority for Statistics, the country's consumer price index rose 0.2 percent in July from the previous month, reflecting moderate increases across several categories, including housing, transport, and restaurants.
Saudi Arabia's inflation remained among the lowest in the Gulf region. Kuwait's annual inflation was 2.19 percent in June, while Qatar's latest reading stood at 2.21 percent. Bahrain and Oman recorded inflation of 2.3 percent and 2.8 percent, respectively, over the same month.
The International Monetary Fund said in June that Saudi inflation is expected to average 2.2 percent in 2026, with higher shipping and insurance costs likely to be partly offset by softer rent inflation and government price controls on some fuel and food items.
In its latest report, GASTAT stated that the annual inflation rate in July was driven by "a rise in housing, water, electricity, gas, and other fuel prices by 4.2 percent, food and beverage prices by 1.5 percent, and transport prices by 1.4 percent."
The report added that actual housing rents rose 4.3 percent, suggesting continued demand for residential properties in the Kingdom.
Personal care and sport driving rise
Other notable annual increases included the personal care, social protection, and miscellaneous goods and services division, which rose 2.9 percent in July, and the recreation, sport, and culture division, which advanced by 2.4 percent.
In contrast, furnishings, household equipment, and routine household maintenance prices fell 0.5 percent, while clothing and footwear prices declined 0.4 percent.
Housing, water, electricity, gas, and other fuels contributed the largest share of the overall annual inflation rate, adding 0.8 percentage points.
Food and beverages accounted for 0.3 percentage points, transport for 0.2 percentage points, and personal care, social protection, and miscellaneous goods and services for another 0.2 percentage points. The remaining divisions together contributed 0.3 percentage points.
Monthly comparison
The CPI rose 0.2 percent in July compared with the previous month. Housing, water, electricity, gas, and other fuels increased 0.9 percent, driven by a 7.1 percent increase in the electricity, gas, and other fuels group.
Restaurants and accommodation services advanced 0.5 percent, while recreation, sport, and culture rose 0.4 percent, and transport increased 0.2 percent.
Personal care, social protection, and miscellaneous goods and services prices fell 1 percent, while furnishings, household equipment, and routine household maintenance prices edged down 0.1 percent.
Wholesale Price Index
In a separate report, GASTAT said the Wholesale Price Index in Saudi Arabia recorded a year-on-year increase of 5 percent in July.
This was mainly attributed to higher prices for other transportable goods excluding metal products, machinery, and equipment, which rose 9.7 percent, and metal products, machinery, and equipment, which increased 1.5 percent.
Within the other transportable goods category, the increase was driven by a sharp 66.7 percent jump in basic chemical prices and a 3.9 percent rise in refined petroleum product prices.
In the metal products, machinery, and equipment category, base metals rose 5.3 percent and electrical machinery and apparatus 2.4 percent.
Agriculture and fishery products also contributed to the annual increase, rising 6.2 percent. This reflected a 7.7 percent increase in agricultural product prices and a 3.9 percent rise in live animal and animal product prices.
Conversely, prices of food products, beverages, tobacco, and textiles fell 0.6 percent, mainly due to a 1.4 percent decline in grain mills, starch, and other food products and a 5.8 percent drop in beverages.
Ores and minerals edged down 0.1 percent, driven by a 0.1 percent decline in stone and sand prices.
On a monthly basis, the WPI remained unchanged in July. This was driven by a 1.8 percent increase in the prices of agriculture and fishery products, specifically a 2.7 percent rise in agricultural products.
Prices of metal products, machinery, and equipment increased 0.1 percent, reflecting a 2 percent increase in radio, television, and communication equipment and apparatus prices and a 0.5 percent increase in fabricated metal product prices.
Prices of food products, beverages, tobacco, and textiles decreased 0.8 percent month on month in July, reflecting a 7.3 percent decline in beverage prices and a 0.4 percent drop in the prices of meat, fish, fruit, vegetables, oils, and fats.
Average prices
In another report, GASTAT highlighted notable movements in average prices of goods and services across the Kingdom in July.
Local carrots recorded the largest month-on-month 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.
Conversely, local grapes recorded the steepest monthly decline at 15.2 percent, followed by local figs at 13.4 percent and local tomatoes at 9.8 percent.
Arab News
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