SAUDI Arabia’s annual inflation rate slowed in July to 2.1 per cent, down from 2.3pc in June, as softer price gains in some categories offset persistent housing pressures, official data showed, reports Arab News.
The figures, published in the latest report from the General Authority for Statistics (GASTAT), revealed that housing, water, electricity, gas and fuel posted the steepest annual increase among major categories, climbing 5.6pc.
That was driven by a 6.6pc rise in rents, including a 6.4pc increase in villa rentals. The housing component accounts for 25.5pc of the consumer price index basket, making it a key driver of the headline figure.
The inflation trend aligns with the kingdom’s goal of balancing economic growth with price stability as part of its Vision 2030 strategy to diversify the economy beyond oil. The government’s November 2024 budget projected inflation to remain steady at 1.9pc in 2025, up slightly from 1.7pc in 2024.
“The annual inflation rate in the kingdom witnessed a relative slowdown in the pace of growth during July 2025, reaching 2.1pc, compared to 2.3pc in the previous June,” GASTAT said.
Food and beverage prices increased by 1.6pc year on year in July, driven by a 2.6pc increase in the costs for meat and poultry.
The authority said expenses for personal goods and services rose by 4.3pc compared to the same period in the previous year. This was due to a 24.7pc rise in the prices of jewellery, watches, and precious antiques.
Restaurant and hotel costs edged up 1.4pc year on year, while education prices advanced by 1.1pc during the same period.
Furnishing and home equipment prices declined by 2pc, expenses for clothing and footwear decreased by 0.4pc, and transportation prices dropped by 0.3pc during the same period.
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