Saudi Inflation Holds at 1.8 Percent for a Third Month as Housing and Utilities Rise 4.2 Percent
Consumer prices in Saudi Arabia rose one point eight percent in the year to July, the third consecutive month at that rate, the General Authority for Statistics said. Prices rose zero point two percent on the month, matching the monthly increase recorded in June.
The stability runs well beyond three months. On the authority’s monthly releases the annual rate has been either one point seven or one point eight percent in every month of 2026, a range of a single tenth of a percentage point across seven months.
| Saudi Arabia, annual inflation through 2026 | Rate |
| January | 1.8% |
| February | 1.7% |
| March | 1.8% |
| April | 1.7% |
| May | 1.8% |
| June | 1.8% |
| July | 1.8% |
That steady headline reflects substantial offsetting movements beneath the aggregate. Housing, water, electricity, gas and other fuels rose four point two percent over the year, with actual rentals for housing up four point three percent, both running at more than twice the headline rate. At the other end, furnishings, household equipment and routine maintenance fell zero point five percent and clothing and footwear fell zero point four percent. The gap between the fastest and slowest divisions is four point seven percentage points.
| Saudi Arabia, July 2026, annual change by division | Change |
| Housing, water, electricity, gas and other fuels | +4.2% |
| Personal care, social protection and miscellaneous | +2.9% |
| Recreation, sport and culture | +2.4% |
| Food and beverages | +1.5% |
| Transport | +1.4% |
| Insurance and financial services | +1.2% |
| Education services | +0.6% |
| Tobacco | +0.4% |
| Health | +0.3% |
| Information and communication | +0.3% |
| Clothing and footwear | −0.4% |
| Furnishings, household equipment and routine maintenance | −0.5% |
| Consumer price index | +1.8% |
The statistics authority is explicit about where the inflation comes from. It describes housing, water, electricity, gas and other fuels as the main contributor to annual inflation, with a contribution of zero point eight percentage points. Against a headline rate of one point eight percent, that single division accounts for about forty four percent of the country’s measured inflation, on our calculation, though both figures are rounded.
Within the month, the same division rose zero point nine percent, which the authority attributes to a seven point one percent increase in the electricity, gas and other fuels group. Restaurants and accommodation services rose zero point five percent on the month and recreation, sport and culture zero point four percent, while personal care, social protection and miscellaneous goods and services fell one percent and furnishings fell zero point one percent.
Why it matters: A headline that has not moved in three months, and has moved by a tenth of a point all year, is usually read as an absence of news. Here it is the opposite. The aggregate is steady while its components are not. Housing and utilities are running at four point two percent and supplying about forty four percent of total inflation from one division, while five of the twelve divisions sit at or below zero point six percent and two are negative. Some goods categories are getting cheaper, with clothing and household furnishings both declining, at the same time as shelter costs rise, with rental prices in the index up four point three percent. The composition means household inflation experiences can differ materially depending on where spending falls, because rents in the index are rising substantially faster than the overall measure while several other categories are flat or falling. The stability of the aggregate is real; it is simply not a description of any particular household.
Looking ahead: A key figure to watch is the electricity, gas and other fuels group, which rose seven point one percent on the month and which the statistics authority identified as the driver of the housing division’s monthly increase. Its next movement could materially influence housing inflation, which is the largest single contributor to the headline. Actual rentals at four point three percent are the other component keeping that division elevated. The two negative divisions, clothing and furnishings, are the counterweight, and a turn there would lift the headline without any change in housing at all. The August release is due next month.
Sources: General Authority for Statistics of Saudi Arabia, Consumer Price Index releases for January to July 2026.
