Saudi inflation reaches 1.8% in June, driven by housing costs

Published: July 15, 2026 | 2:47 PM

Saudi Arabia's inflation remains modest relative to many global economies, with housing costs emerging as a consistent upward driver.

July 15, 2026 | 02:47 PM

Saudi Gazette

Last Updated: July 15, 2026 | 02:47 PM

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RIYADH — Saudi Arabia’s annual inflation rate rose to 1.8% in June 2026 compared to the same month last year, propelled by elevated costs for housing, food, and transport, as reported by the General Authority for Statistics (GASTAT).

The housing, water, electricity, gas, and other fuels category saw a yearly increase of 3.5%, largely due to a 4.4% rise in actual residential rents.

Figure from GASTAT report.

Figure from GASTAT report.

Food and beverage prices increased 1.4 percent, while transport prices rose 1.7 percent.

Personal care, social protection, and other goods and services recorded the largest increase among the main divisions at 3.8 percent, driven by a 13.6 percent increase in other personal effects, reflecting a 14.7 percent rise in jewelry and watch prices.

Recreation, sport, and culture prices also increased 2.5 percent, driven by a 4.2 percent increase in holiday package prices.

Figure from GASTAT report.

Figure from GASTAT report.

Meanwhile, prices for personal care, social protection, and other goods and services declined 1.0 percent, while restaurants and accommodation services and information and communication each fell 0.1 percent.

On a monthly basis, the Consumer Price Index increased 0.2 percent in June compared with May 2026. Food and beverage prices rose 0.7 percent, while transport prices increased 0.4 percent and housing, water, electricity, gas, and other fuels edged up 0.1 percent.

The persistent rise in housing rents points to robust demand in the real estate sector, supported by demographic growth and economic modernization initiatives. The notable surge in jewelry and watch prices may reflect shifting consumer spending patterns toward luxury goods. Overall, the June inflation reading remains within the Saudi Arabian Monetary Authority's target range, indicating stable price pressures.