Saudi Arabia's annual inflation rate reached 1.8% in August 2026, which represents a significant increase compared to the same month in 2025. This data was published by the General Authority for Statistics of Saudi Arabia (GASTAT).
Factors Influencing Inflation Increase
The increase in the inflation rate in Saudi Arabia is mainly due to a 3.9% rise in prices in the housing, water, electricity, gas, and other fuels sector. Additionally, food and beverage prices increased by 1.4% and transportation prices also rose by 2%. These changes reflect economic pressures on households and the cost of living in the country.
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Details of Price Increases
Housing rents have also increased by 3.9% compared to last year. Prices of personal care items, social support, and other services have risen by 3.5%. Meanwhile, prices of other personal items, especially jewelry and watches, have grown by 14.4%, which has specifically impacted the overall price increase.
Prices for recreation, sports, and culture have also increased by 2.8%, driven by a 4.7% rise in holiday package prices. In contrast, prices for household goods and daily maintenance costs have decreased by 0.6%, and clothing and footwear prices have also dropped by 0.5%.
The housing, water, electricity, gas, and other fuels sector has contributed the largest share to the annual inflation increase, accounting for 0.8% of this rise alone. Meanwhile, food and beverage prices and transportation each contributed 0.3% to this rate.
On a monthly basis, consumer prices in August increased by 0.1% compared to July. Housing-related prices rose by 0.2%, and transportation prices increased by 0.6%. Additionally, prices related to personal care, social support, and other goods and services also showed a 0.8% increase. However, food and beverage prices decreased by 0.1% compared to the previous month, and restaurant and accommodation services experienced a price drop of 0.4%.
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