Saudi Arabia closed 2025 with a modest uptick in price pressures, as annual inflation edged up to 2.1 percent in December, compared with 1.9 percent a year earlier.
The increase was largely driven by higher living costs. Housing-related expenses — including rents, utilities, gas and other fuels — climbed 4.1 percent, continuing to be the strongest contributor. Food and beverage prices rose 1.3 percent, while transportation costs increased 1.5 percent, reflecting higher charges for passenger services.
On a month-to-month basis, inflation showed only a slight movement, with the Consumer Price Index rising 0.1 percent from November, according to official data released by the General Authority for Statistics.
Housing costs remained central to the inflation story. Actual rents paid by tenants for primary residences increased 5.3 percent year-on-year, reinforcing the broader rise in the housing category. Food prices were lifted by costlier meat, while transport inflation was pushed higher by a notable jump in passenger transport services.
Other areas recorded sharper gains. Personal care, social protection and miscellaneous goods and services rose 7 percent, influenced by a steep increase in the prices of jewelry, watches and other personal effects. Insurance and financial services advanced 4.1 percent, while recreation, sports and culture rose 2.4 percent, supported by higher holiday package prices. Education services increased 1.5 percent, and restaurant and hotel services were up 0.9 percent.
Monthly movements were mixed. Housing costs rose 0.2 percent in December, driven by higher rents. Small increases were also seen in food and beverages, restaurants and accommodation, and personal care services. At the same time, prices eased in clothing and footwear, transportation, and insurance and financial services. Education and tobacco prices were largely unchanged.
Wholesale prices mirrored the upward trend. The Wholesale Price Index rose 3.1 percent year-on-year in December and increased 1 percent compared with November. The annual rise was led by higher prices for transportable goods excluding metals and machinery, as well as agricultural and fishing products.
Refined petroleum products and basic chemicals were key contributors to wholesale inflation, while agricultural prices also moved higher. Gains were partially offset by a slight decline in raw materials and minerals, reflecting marginally lower stone and sand prices.
Overall, the data point to contained but persistent inflationary pressures, with housing, services and energy-linked items continuing to shape Saudi Arabia’s price landscape as the new year begins.
