Prime Highlights:
- Saudi Arabia’s overall inflation remained stable at 2% in 2025, keeping the economic outlook predictable for businesses and consumers.
- Housing and utility costs increased, with rents for main residences rising 8.2%, the largest contributor to inflation.
Key Facts:
- Food, beverage, and restaurant prices saw modest increases of 1.1–1.8%, while some sectors like household equipment, information and communication, and healthcare saw small declines.
- The wholesale price index rose 2% in 2025, led by higher costs in transportable goods and agriculture, while ores and minerals, including stone and sand, fell by 1.2%.
Background:
Saudi Arabia’s inflation stayed at 2 percent in 2025, even though rising housing rents put some pressure on prices, according to the General Authority for Statistics (GASTAT).
Average prices for housing, utilities, and other fuels went up by 6.1 percent during the year. Rents for main residences rose by 8.2 percent, making housing the biggest inflation factor.
Other consumer prices increased more slowly. Food and drinks went up by 1.1 percent, while prices for restaurants and accommodation rose by 1.8 percent. Spending on personal care, social protection, and miscellaneous goods and services grew by 5.1 percent, driven largely by an 18.6 percent rise in prices for other personal belongings.
Conversely, some sectors recorded price declines. Prices for home furnishings, household items, and regular maintenance fell by 0.8 percent.
GASTAT’s figures are close to the International Monetary Fund’s predictions, which expected Saudi Arabia’s inflation to be around 2.1 percent in 2025 and 2 percent in 2026.
On the wholesale front, the annual average of the wholesale price index increased by 2 percent. This was led by a 4 percent rise in other transportable goods and a 4.1 percent increase in agriculture and fishery products. Prices for food, drinks, tobacco, and textiles increased slightly by 0.2 percent, while grains, starch, and related products went up by 1.5 percent.
Saudi Arabia’s inflation is stable, but housing and utility costs remain a concern.
Read Also: UAE’s EDGE Group and Qatar’s Barzan Holdings Form Joint Venture to Develop Advanced Defence Technologies
