Saudi inflation rises 2.1% in December as housing costs drive prices

Saudi Arabia’s annual inflation rate reached 2.1 per cent in December 2025, according to the latest Consumer Price Index (CPI) figures released by the General Authority for Statistics (GASTAT), with housing and rental costs continuing to be the main driver of price increases.

On a month-on-month basis, consumer prices rose by 0.1 per cent compared with November. The housing, water, electricity, gas and other fuels category increased by 0.2 per cent during the month, driven by a 0.3 per cent rise in actual rents for housing. Food and beverage prices also increased by 0.1 per cent, while restaurants and accommodation services rose by 0.2 per cent.

On an annual basis, housing-related costs climbed 4.1 per cent, largely due to a 5.3 per cent increase in actual rents paid by tenants for primary residences. Food and beverage prices were up 1.3 per cent year on year, influenced by higher prices for fresh, chilled and frozen meat, while transport prices increased by 1.5 per cent, reflecting a 6.6 per cent rise in passenger transport costs.

The personal care, social protection and other goods and services category recorded the largest annual increase, rising by 7.0 per cent, driven by higher prices for items such as jewellery and watches. Insurance and financial services prices rose by 4.1 per cent year on year, while entertainment, sports and culture increased by 2.4 per cent, supported by higher prices for holiday packages.

By contrast, clothing and footwear prices declined by 0.2 per cent on a monthly basis, while transport and insurance and financial services also saw slight month-on-month decreases. Prices for education services and tobacco were broadly unchanged in December.

The CPI tracks price changes across a basket of 582 goods and services and has been published using an updated methodology since August 2025, reflecting expanded geographic coverage and additional data sources in line with international best practices.