Saudi Arabia inflation reaches 1.8% in August on housing costs
Housing, water, electricity and fuel prices rose 3.9% year-on-year, according to GASTAT data published September 15.
Saudi Arabia's annual inflation rate reached 1.8 percent in August 2026 compared with August 2025, according to data published September 15 by the General Authority for Statistics. The figure was driven primarily by housing, water, electricity, gas and fuel prices, which rose 3.9 percent year-on-year, while food and beverage prices increased 1.4 percent and transport prices rose 2 percent.
Housing and fuel costs lead annual increase#
Housing rents increased 3.9 percent year-on-year in August. Prices for personal care, social protection and other goods and services rose 3.5 percent, with jewelry and watch prices climbing 14.4 percent within that category. Recreation, sport and culture prices increased 2.8 percent, driven by a 4.7 percent rise in holiday package prices. Furnishings and household equipment prices declined 0.6 percent, while clothing and footwear prices fell 0.5 percent.
Category contributions to the annual rate#
Housing, water, electricity, gas and fuel accounted for 0.8 percentage points of the 1.8 percent annual inflation rate. Food and beverages contributed 0.3 percentage points, and transport contributed 0.3 percentage points. The remaining categories accounted for the balance of the August figure.
Monthly movement from July to August#
Consumer prices edged up 0.1 percent in August compared with July 2026. Housing-related prices increased 0.2 percent month-on-month, transport rose 0.6 percent, and personal care and other services increased 0.8 percent. Food and beverage prices declined 0.1 percent from July, while restaurant and accommodation services fell 0.4 percent over the same period.
Jewelry and holiday packages record steeper gains#
Within the personal care and other goods category, prices of other personal effects climbed 13.3 percent year-on-year, driven by the 14.4 percent increase in jewelry and watch prices. Holiday package prices, which contributed to the recreation and culture category's 2.8 percent annual rise, increased 4.7 percent in August compared with the same month in 2025.
Sources1 source across 1 domain
- saudigazette.com.saSaudi GazetteSaudi Arabia's annual inflation rate reached 1.8% in August 2026, with housing, water, electricity, gas and fuel prices rising 3.9%, food and beverage prices up 1.4%, and transport prices up 2%
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