Producer prices jump 5.1% in August, led by manufacturing prices

In Saudi Arabia, the Producer Price Index (PPI) surged by 5.1 percent in August 2026 compared to the same period in 2025, according to figures from the General Authority for Statistics (GASTAT). This increase was driven primarily by a 5.3 percent rise in manufacturing prices. Additionally, prices for water supply, sewerage, and waste management climbed by 4.2 percent, while electricity, gas, steam, and air conditioning supply prices rose by 2.2 percent.

At the industrial level, refined petroleum products experienced a 4.8 percent year-on-year increase, with chemical products surging 10.5 percent. Food products saw a 5.4 percent price hike, while basic metal prices rose by 8.6 percent and apparel prices jumped by 13.4 percent. Conversely, fabricated metal product prices excluding machinery and equipment fell by 3.1 percent, while other economic activities' prices dropped by 3.5 percent.

On a month-to-month basis, the PPI remained stable in August 2026 compared to July, with manufacturing prices slightly declining by 0.1 percent. This decrease was attributed to a 1.5 percent drop in chemical product prices, a 0.8 percent reduction in rubber and plastic product costs, and a 0.5 percent decline in other sectors. However, refined petroleum product prices rose by 0.6 percent, and basic metal prices increased by 0.2 percent.

Meanwhile, electricity, gas, steam, and air conditioning supply prices climbed by 1 percent month-on-month, alongside a 0.3 percent rise in water supply, sewerage, and waste management activity prices. The PPI gauges relative changes in the cost of domestically produced goods and is derived from data gathered through the Producer Price Survey, which assesses a sample of industrial establishments participating in the surveyed activities.