Saudi Inflation Remained at 2% in 2025

Saudi Arabia recorded an annual average inflation rate of 2% in 2025, with housing rents identified as the main driver of price increases, according to data released by General Authority for Statistics.

The authority said prices in the housing, water, electricity, gas and other fuels category rose by 6.1% over the year, largely due to an 8.2% increase in actual rents paid by tenants for main residences. Housing costs continued to exert the strongest upward pressure on consumer prices, while movements across other categories remained mixed.

Food and beverage prices increased by 1.1% in 2025, reflecting the category’s significant weight in the consumer basket. Prices for restaurants and accommodation services rose by 1.8% over the year. Spending on personal care, social protection and miscellaneous goods and services increased by 5.1%, driven in part by an 18.6% rise in prices for other personal belongings.

By contrast, several categories recorded declines. Prices for furnishings, household equipment and routine household maintenance fell by 0.8% year on year. Information and communication costs decreased by 0.7%, influenced by a 6.8% drop in prices for communication equipment. Healthcare expenses edged down by 0.2%, reflecting a 2.2% decline in prices for inpatient therapeutic and rehabilitative services.

Separately, the International Monetary Fund projected Saudi Arabia’s inflation at 2.1% in 2025 and 2% in 2026, indicating continued price stability despite persistent pressures in the housing market.