16/06/2026 03:34 AST
Saudi Arabia's annual inflation rate edged up to 1.8 percent in May with housing rents continuing to drive price gains in the Kingdom, official data showed.
According to the latest report released by the General Authority for Statistics, the Kingdom's Consumer Price Index edged up 0.2 percent month on month in May, reflecting moderate increases across several categories, including food, housing and transportation.
Compared with neighboring Gulf economies, Saudi Arabia's inflation rate remained relatively contained. Kuwait recorded annual inflation of 2.57 percent in April, while Qatar's latest inflation reading stood at 2.62 percent.
In its latest report, GASTAT stated the latest increase was "mainly driven by a rise in housing, water, electricity, gas, and other fuel prices by 3.7 percent, transport prices by 1.5 percent, and prices of restaurant and accommodation services by 1.7 percent."
The figures showed that actual housing rents increased by 4.7 percent, underscoring continued demand for residential properties in the Kingdom.
According to the report, personal care, social protection, and other goods and services posted the highest annual gain at 5.6 percent.
This was largely due to a sharp 18.5 percent surge in other personal effects, fueled by a 20 percent rise in jewelry and watches prices.
Recreation, sport, and culture prices rose by 2.6 percent year on year in May, boosted by a 4.3 percent increase in holiday packages.
Conversely, prices in furnishings, household equipment, and periodic home maintenance fell by 0.5 percent, and clothing and footwear declined by 0.1 percent.
The housing, water, electricity, gas and other fuels division contributed the most to the overall annual inflation rate, with 0.7 percentage points, followed by personal care, social protection, and other goods and services at 0.3 percentage points.
Transport and food and beverages each added 0.2 percentage points, with the remaining divisions contributing a combined 0.3 percentage points.
On a monthly basis, the transportation sector led the gains with a 0.6 percent increase, driven by a 1.9 percent rise in passenger transport services.
Housing, water, electricity, gas, and other fuels expenses edged up by 0.2 percent month on month in May, while food and beverages costs increased by 0.1 percent.
Offsetting these were declines in personal care, social protection, and other goods and services by 0.2 percent, furnishings, household equipment, and periodic home maintenance by 0.2 percent, and clothing and footwear by 0.1 percent.
Wholesale Price Index
In a separate report, GASTAT revealed that the Wholesale Price Index in Saudi Arabia recorded a year-on-year increase of 4.6 percent in May.
According to the authority, this rise was mainly attributed to price increases in other transportable goods, excluding metal products, machinery, and equipment, which rose by 9.1 percent.
This increase was driven by a 59 percent rise in basic chemicals prices and a 3.9 percent increase in refined petroleum product prices.
Prices of metal products, machinery, and equipment also increased annually by 1.5 percent, due to higher costs of basic metals, which rose by 6.1 percent, and electrical machinery and apparatus, which increased by 2.2 percent.
The report further said that prices of agriculture and fishery products increased by 3 percent year on year in May, driven by agricultural products rising 2.8 percent and live animals and animal products climbing 4.9 percent.
Conversely, prices of food products, beverages, tobacco, and textiles decreased by 0.1 percent, driven by declines in grain mills, starch, and other food products prices of 1.4 percent and dairy product prices of 1.2 percent.
Prices of ores and minerals also fell by 0.6 percent due to a 0.6 percent drop in stones and sand.
On a monthly basis, the WPI increased by 1.2 percent in May, primarily driven by a 2.6 percent rise in other transportable goods excluding metal products, machinery, and equipment.
WPI reflects the development of pre-retail prices of goods in a fixed basket including 343 items. Prices are collected monthly from points of sale in Riyadh, Jeddah and Dammam. The year 2014 was determined as the base year.
Average prices
In another report, GASTAT highlighted notable movements in average prices of goods and services across the Kingdom in May.
Abu Sorra Egyptian Orange recorded the largest month-on-month increase at 7.7 percent, followed by Harri Sheep at 4.7 percent, Pakistani Mandarin at 4.6 percent, and Naemi Sheep at 4.1 percent.
Conversely, local okra saw the steepest monthly decline at 10.2 percent, followed by local melon at 10 percent and Lebanese peach at 9.8 percent.
Producer Price Index
In a separate report, GASTAT revealed that Saudi Arabia's Producer Price Index recorded an increase of 9.1 percent in April compared to the same month of the previous year.
This annual rise was primarily driven by a 9.7 percent increase in manufacturing prices, a 2 percent rise in prices of electricity, gas, steam, and air conditioning supply, and a 7.7 percent increase in prices for water supply, sewerage, waste management, and remediation activities.
Within the manufacturing sector, notable price gains included a 16.3 percent increase in the manufacture of refined petroleum products, a 14.9 percent increase in the manufacture of chemicals and chemical products, and a 12.8 percent rise in the manufacture of wearing apparel.
On a monthly basis, the Kingdom's PPI rose 3.3 percent, supported by higher prices in the manufacture of chemicals and chemical products, which increased by 11.5 percent.
Producer prices, which measure changes received by domestic producers for goods and services, are closely watched as an early indicator of inflation trends.
PPI is based on data from the Producer Price Survey conducted on a sample of industrial establishments in manufacturing, electricity and gas supply, and water supply, sewerage, waste management, and remediation activities.
Arab News
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