Saudi inflation stays contained at 2% despite rent pressures: GASTAT

21/01/2026 05:06 AST

Saudi Arabia's inflation rate stood at 2 percent in 2025, with rising housing rents remaining the main source of price pressure despite declines across several consumer categories.

According to data from the Kingdom's General Authority for Statistics, annual average prices for housing, water, electricity, gas, and other fuels increased by 6.1 percent in 2025, driven by an 8.2 percent rise in actual rents paid by tenants for main residences.

Saudi Arabia's inflation trajectory broadly aligns with projections made by the International Monetary Fund in October, which said the Kingdom is expected to maintain an annual inflation rate of 2.1 percent in 2025 and 2 percent in 2026.

In its latest report, GASTAT stated: "The annual average inflation for CPI in the Kingdom of Saudi Arabia reached 2.0 percent in 2025, compared to the annual average of 2024."

It added that alongside housing and utility cost increases, there had been "a 1.1 percent increase in food and beverage prices, reflecting their significant relative weight in the Consumer Price Index basket."

According to GASTAT, annual average prices for restaurants and accommodation services increased by 1.8 percent in 2025.

Spending on personal care, social protection, and miscellaneous goods and services rose by 5.1 percent compared to the previous year, driven by an 18.6 percent increase in prices of other personal belongings.

By contrast, prices for furnishings, household equipment, and routine household maintenance declined by 0.8 percent year on year in 2025.

Costs in the information and communication category also fell by 0.7 percent, influenced by a 6.8 percent drop in information and communication equipment prices.

Healthcare expenses decreased by 0.2 percent, reflecting a 2.2 percent decline in prices for inpatient therapeutic and rehabilitative services.

Wholesale price index
In a separate report, GASTAT said the annual average of the wholesale price index rose by 2 percent in 2025 compared to the previous year.

The increase was driven by a 4 percent rise in prices of other transportable goods, as well as a 4.1 percent increase in agriculture and fishery products.

Prices of food products, beverages, tobacco, and textiles increased by 0.2 percent, supported by a 1.5 percent rise in grain mills, starch, and other food products.

Prices of metal products, machinery, and equipment edged up by 0.1 percent in 2025, while costs for leather, leather products, and footwear rose by 1.1 percent over the same period.

Conversely, ores and mineral prices declined by 1.2 percent, due to a fall of the same magnitude in stone and sand prices.

Arab News