Saudi Arabia’s inflation softened to 1.8 per cent in January, signalling contained price pressures even as housing rents remained the main driver of consumer costs, official data showed.
According to the General Authority for Statistics, average prices for housing, water, electricity, gas and other fuels rose 4.2pc in January, reflecting a 5.2pc increase in actual residential rents.
Saudi Arabia’s inflation trajectory broadly aligns with projections by the International Monetary Fund, which said in October the kingdom is expected to maintain an annual inflation rate of about 2pc in 2026.
In its latest report, GASTAT stated: “The Consumer Price Index in Saudi Arabia recorded an annual increase of 1.8pc in January 2026, compared to the same month of the previous year.”
It added: “This increase was mainly driven by a rise in housing, water, electricity, gas and other fuel prices by 4.2pc, transport prices by 1.5pc and restaurant and accommodation services prices by 1pc.”
According to the report, expenses for personal care, social protection and miscellaneous goods and services increased 7.9pc year on year in January, while insurance and financial services costs rose 3.3pc.
Prices for recreation, sport and culture increased 2.3pc, driven by a 3.7pc rise in package holiday expenses. Education service prices rose 1.6pc, reflecting higher secondary education costs.
Food and beverage prices increased 0.2pc year on year.
Conversely, prices for furnishings, household equipment and routine household maintenance fell 0.3pc in January, while healthcare expenses declined 0.1pc over the same period.
On a month-on-month basis, Saudi Arabia’s CPI rose 0.2pc in January from December.
Housing, water, electricity, gas and other fuels increased 0.5pc month on month, again driven by higher residential rents. Transport prices rose 0.2pc, while restaurant and accommodation services gained 1pc.
Food and beverage prices fell 0.6pc during the month, and information and communication costs slipped 0.1pc. Education, healthcare, furnishings and tobacco prices were largely unchanged.
In a separate report, GASTAT said Saudi Arabia’s Wholesale Price Index rose 2.9pc in January compared with the same month in 2025.
The increase was attributed to higher prices for other transportable goods – excluding metal products, machinery and equipment – which climbed 4.9pc, as well as agricultural and fishery products, which rose 4.2pc.
Metal products, machinery and equipment prices increased 1.2pc year on year in January, while food products, beverages, tobacco and textiles rose 0.3pc. Ores and mineral prices declined 0.1pc.
Compared with December, the kingdom’s WPI increased 1.5pc, driven by a 3.4pc rise in other transportable goods excluding metal products, machinery and equipment.
On a month-on-month basis, agricultural and fishery product prices increased 0.5pc, while food products, beverages, tobacco and textiles posted a modest 0.2pc gain.
In another report, GASTAT highlighted notable changes in average prices of goods and services across Saudi Arabia in January.
Local watermelon recorded the largest month-on-month increase at 7.5pc, followed by local black eggplants at 6.5pc, local okra at 6.3pc and Indian pomegranates at 6.1pc.
Conversely, several items posted sharp price declines.
Abu Sorra Egyptian oranges recorded the steepest fall at 28.2pc, followed by Pakistani mandarins at 21.3pc and green beans at 12.3pc.
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