RIYADH: Saudi Arabia’s inflation rate stood at 2 percent in 2025, with rising housing rents remaining the main source of price pressure despite declines across several consumer categories.
According to data from the Kingdom’s General Authority for Statistics, annual average prices for housing, water, electricity, gas, and other fuels increased by 6.1 percent in 2025, driven by an 8.2 percent rise in actual rents paid by tenants for main residences.
Saudi Arabia’s inflation trajectory broadly aligns with projections made by the International Monetary Fund in October, which said the Kingdom is expected to maintain an annual inflation rate of 2.1 percent in 2025 and 2 percent in 2026.
In its latest report, GASTAT stated: “The annual average inflation for CPI in the Kingdom of Saudi Arabia reached 2.0 percent in 2025, compared to the annual average of 2024.”
It added that alongside housing and utility cost increases, there had been "a 1.1 percent increase in food and beverage prices, reflecting their significant relative weight in the Consumer Price Index basket.”
