Saudi Producer Prices rise 7.5% in May on higher manufacturing costs
RIYADH — Saudi Arabia's Producer Price Index (PPI) increased by 7.5 percent in May 2026 to last year, driven mostly by higher manufacturing prices, according to the General Authority for Statistics (GASTAT). Other services that drove the increase include electricity, gas, steam and air conditioning supply, water supply, sewerage, waste management, and remediation activities. Manufacturing prices rose 8.0 percent year-on-year, driven by a 15.2 percent increase in the manufacture of chemicals and…
Saudi Producer Prices rise 7.5% in May on higher manufacturing costs
Published: July 15, 2026, at 04:05 PM
The PPI is a key indicator of inflationary trends in the industrial sector, reflecting the selling prices that domestic producers receive for their goods.
July 15, 2026 | 04:05 PM
Last Updated: July 15, 2026 | 04:05 PM
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Saudi Arabia's Producer Price Index (PPI) rose 7.5% in May 2026 compared to the same month last year, primarily due to higher manufacturing costs, the General Authority for Statistics (GASTAT) reported.
Other services that drove the increase include electricity, gas, steam and air conditioning supply, water supply, sewerage, waste management, and remediation activities.
Year-on-year, manufacturing prices climbed 8.0%, propelled by a 15.2% surge in the production of chemicals and chemical products.
Figure from GASTAT's report showing the PPI annual change.
There was also a 12.7 percent rise in the manufacture of wearing apparel, a 10.7 percent increase in the manufacture of refined petroleum products, a 9.8 percent rise in the manufacture of basic metals, and a 3.2 percent increase in the manufacture of food products.
Meanwhile, prices of electricity, gas, steam, and air-conditioning supply increased by 2.0 percent, while prices of water supply, sewerage, waste management, and remediation activities rose by 8.3 percent.
On a monthly basis, the PPI declined 1.8 percent in May compared with April 2026, driven by a 2.0 percent decrease in manufacturing prices.
Figure from GASTAT's report showing the PPI monthly changes by division.
The decline was supported by a 6.3 percent drop in the manufacture of refined petroleum products, a 3.4 percent decrease in the manufacture of fabricated metal products (except machinery and equipment).
There was also a 1.5 percent decline in other economic activities, and a 0.3 percent decrease in the manufacture of wearing apparel that contributed to the overall PPI decline.
Meanwhile, prices for the manufacture of chemicals and chemical products increased 0.5 percent, the manufacture of basic metals rose 9.5 percent, and water supply, sewerage, waste management, and remediation activities increased 1.9 percent, while electricity, gas, steam, and air conditioning supply recorded no significant monthly change.
The rise in producer prices may signal future increases in consumer prices as manufacturers pass on higher costs. It also underscores the impact of global commodity price movements and domestic demand on Saudi Arabia's non-oil industrial sector. Policymakers will likely monitor these developments closely to assess economic stability amid ongoing diversification efforts under Vision 2030.
Original source: Saudi Gazette
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