RIYADH: Saudi Arabia’s producer prices rose 0.4 percent in January from a year earlier, supported by higher utility costs, as wholesale inflation remained contained at the start of 2026.

The Kingdom’s producer price index stood at 104.4 in the first month of the year, slightly up from 104 a year earlier and 103.5 in December, according to data released by the General Authority for Statistics.

Producer prices, which measure changes received by domestic producers for goods and services, are closely watched as an early indicator of inflation trends.

This comes as Saudi Arabia’s annual inflation rate eased to 1.7 percent in February, the lowest in a year, with stable food prices helping offset continued pressure from housing rents, according to a separate GASTAT report.

In its latest PPI report, GASTAT stated: “This increase was driven by a 0.1 percent rise in manufacturing prices, a 1.8 percent increase in electricity, gas, steam, and air conditioning supply prices, and an 11.5 percent rise in water supply, sewerage, and waste management and remediation prices.”