Saudi inflation reaches 1.8% in July, driven by 4.2% rise in housing costs

Saudi Arabia's annual inflation rate rose to 1.8 percent in July 2026, with housing costs leading the surge, according to the General Authority for Statistics (GASTAT). The increase in housing was primarily due to a 4.3 percent rise in rents, which accounted for 0.8 percentage points of the total inflation. Personal care and social protection prices also saw a 2.9 percent increase year-on-year, largely due to a 12 percent hike in jewelry and watch prices.

Entertainment, sports, and culture expenses grew by 2.4 percent, primarily driven by a 3.7 percent rise in holiday offers. Food and beverage prices went up by 1.5 percent, while transportation costs increased by 1.4 percent. On the flip side, furnishings, household equipment, and routine home maintenance prices dropped by 0.5 percent, as did clothing and footwear items, which fell by 0.4 percent.

Over the previous month, the Consumer Price Index (CPI) climbed 0.2 percent in July compared to June 2026. Housing, water, electricity, gas, and other fuel prices surged by 0.9 percent, mainly because of a 7.1 percent rise in the electricity, gas, and other fuels category. Restaurant and accommodation services saw a 0.5 percent increase, entertainment, sports, and culture rose by 0.4 percent, and transport prices went up by 0.2 percent.

In contrast, personal care, social protection, and other goods and services prices fell by 1 percent, while furnishings, household equipment, and routine home maintenance prices declined by 0.1 percent.