Prime Highlights
- Saudi Arabia’s inflation remained low at 1.8%, showing stable prices despite rising housing rents.
- The economy continues to stay balanced, with controlled price increases across key sectors.
Key Facts
- Housing costs rose 4.2% year on year, mainly due to a 5.2% increase in residential rents.
- The International Monetary Fund expects inflation to stay around 2% in 2026.
Background:
Saudi Arabia’s inflation rate eased to 1.8 percent in January 2026, showing that prices stayed mostly stable even as housing rents continued to rise, according to data from the General Authority for Statistics (GASTAT).
The Consumer Price Index (CPI) showed that housing, water, electricity, gas, and fuel costs were the main drivers of inflation, increasing 4.2 percent compared to last year. This was largely due to a 5.2 percent rise in residential rents. Transport costs went up by 1.5 percent, while restaurant and accommodation prices increased by 1 percent.
GASTAT said overall price growth remained steady, supporting economic stability in the country. The trend matches forecasts from the International Monetary Fund, which expects inflation to stay near 2% in 2026.
Other areas showed mixed changes. Personal care and other services rose by 7.9 percent, while insurance and financial services increased by 3.3 percent. Prices for recreation and culture grew 2.3 percent, supported by higher travel package costs. Education expenses increased 1.6 percent, reflecting rising secondary school fees.
Meanwhile, some categories helped ease overall inflation. Food and beverage prices rose only 0.2 percent annually and declined 0.6 percent on a monthly basis. Healthcare costs fell slightly by 0.1 percent, and furnishings and household equipment prices dropped 0.3 percent.
Prices rose slightly by 0.2 percent in January compared to December, mainly due to higher housing and service costs.
In another report, the General Authority for Statistics (GASTAT) said the Wholesale Price Index increased by 2.9 percent from a year earlier, led by higher prices of transportable goods and agricultural products.
Overall, inflation in Saudi Arabia remains stable, with balanced price changes across sectors.
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