Saudi Arabia's Producer Price Index rose by 7.5% in May 2026 compared to the same month in 2025.

According to official data from the General Authority for Statistics, this was driven by an 8.0% rise in manufacturing prices, a 2.0% rise in electricity, gas, steam, and air conditioning supply prices, and an 8.3% rise in water supply, sewerage, waste management, and remediation activities prices.

Producer Prices in Saudi Arabia

Manufacturing prices rose by 8.0%, driven by a 10.7% increase in the manufacture of refined petroleum products, a 15.2% increase in the manufacture of chemicals and chemical products, a 3.2% increase in the manufacture of food products, a 9.8% increase in the manufacture of basic metals, and a 12.7% increase in the manufacture of wearing apparel.

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In contrast, prices for the manufacture of fabricated metal products, except machinery and equipment, decreased by 4.8%, prices for the manufacture of furniture decreased by 1.9%, and other economic activities decreased by 5.5%. Prices for electricity, gas, steam, and air conditioning supply rose by 2%, while prices for water supply, sewerage, waste management, and remediation activities increased by 8.3% in May 2026.

Monthly decline

On a monthly basis, the Producer Price Index in May 2026 fell by 1.8% compared to April 2026, driven by a 2.0% decline in manufacturing prices, supported by a 6.3% decrease in the manufacture of refined petroleum products, a 3.4% decrease in the manufacture of fabricated metal products (except machinery and equipment), a 1.5% decrease in other economic activities, and a 0.3% decrease in the manufacture of wearing apparel. Prices for the manufacture of chemicals and chemical products rose by 0.5%, prices for the manufacture of basic metals increased by 9.5%, and prices for water supply, sewerage, waste management, and remediation activities rose by 1.9%, while electricity, gas, steam, and air conditioning supply did not record any significant relative change in May 2026 compared to April 2026.

The Producer Price Index (PPI) is an economic indicator that reflects relative changes in the prices of domestic products, based on data from a producer price survey conducted on a sample of industrial establishments operating in the targeted industrial activities, namely manufacturing, electricity and gas supply, and water supply, sewerage, waste management, and remediation activities. The data for this indicator, published monthly, are classified according to the National Classification of Economic Activities (ISIC 4).