Saudi Arabia’s inflation rate stood at 2 per cent in 2025, with rising housing rents remaining the main source of price pressure despite declines across several consumer categories, reports the Arab News.
According to data from the kingdom’s General Authority for Statistics (GASTAT), annual average prices for housing, water, electricity, gas, and other fuels increased by 6.1pc in 2025, driven by an 8.2pc rise in actual rents paid by tenants for main residences.
Saudi Arabia’s inflation trajectory broadly aligns with projections made by the International Monetary Fund in October, which said the kingdom is expected to maintain an annual inflation rate of 2.1pc in 2025 and 2pc in 2026.
In its latest report, GASTAT stated: “The annual average inflation for CPI in the Kingdom of Saudi Arabia reached 2.0pc in 2025, compared to the annual average of 2024.”
It added that alongside housing and utility cost increases, there had been “a 1.1pc increase in food and beverage prices, reflecting their significant relative weight in the Consumer Price Index basket.”
According to GASTAT, annual average prices for restaurants and accommodation services increased by 1.8pc in 2025.
Spending on personal care, social protection, and miscellaneous goods and services rose by 5.1pc compared to the previous year, driven by an 18.6pc increase in prices of other personal belongings.
By contrast, prices for furnishings, household equipment, and routine household maintenance declined by 0.8pc year on year in 2025.
Costs in the information and communication category also fell by 0.7pc, influenced by a 6.8pc drop in information and communication equipment prices.
Healthcare expenses decreased by 0.2pc, reflecting a 2.2pc decline in prices for inpatient therapeutic and rehabilitative services.
In a separate report, GASTAT said the annual average of the wholesale price index rose by 2 percent in 2025 compared to the previous year.
The increase was driven by a 4 percent rise in prices of other transportable goods, as well as a 4.1 percent increase in agriculture and fishery products.
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