Saudi inflation reaches 1.8% in July, driven by 4.2% rise in housing costs

According to the latest data released by the General Authority for Statistics (GASTAT), Saudi Arabia’s annual inflation rate reached 1.8 percent in July 2026. The report indicates that the primary driver for this increase was the housing, water, electricity, gas, and other fuels sector, which saw an annual rise of 4.2 percent. Within this category, actual housing rents experienced a 4.3 percent increase, serving as the largest contributor to the overall inflation rate by accounting for 0.8 percentage points.

Beyond housing and utilities, the data highlights inflationary pressures in other consumer sectors. Prices for personal care, social protection, and other goods and services rose by 2.9 percent year-on-year, largely influenced by an 11.1 percent surge in the cost of personal effects, which included a 12 percent rise in jewelry and watch prices. Additionally, the entertainment, sports, and culture division saw a 2.4 percent annual increase, driven by a 3.7 percent rise in holiday offers.

Other sectors showed more moderate growth, with food and beverage prices rising by 1.5 percent and transport costs increasing by 1.4 percent. These figures provide a snapshot of the current economic climate in the Kingdom as it continues to navigate shifts in consumer spending and market costs. The GASTAT report serves as the official benchmark for tracking these economic trends across the Saudi economy.