Saudi Arabia’s annual inflation rate held steady at 2.1 percent in July 2025, maintaining consistency compared to the same timeframe last year, as reported by the Saudi Press Agency (SPA).
Data from the General Authority for Statistics (GASTAT) indicated that the Consumer Price Index (CPI) also exhibited stability on a monthly basis, with most price categories remaining largely unchanged from June to July 2025. Meanwhile, the Wholesale Price Index (WPI) remained at 2.1 percent in July, although it recorded a slight monthly decline of 0.1 percent compared to June.
The CPI tracks fluctuations in the prices consumers pay for a fixed assortment of 490 goods and services, while the WPI monitors changes in pre-retail prices for a fixed collection of 343 items.
Additional insights reveal that Saudi Arabia’s cost-of-living index, with 2018 as the base year, rose to 113.74 points in July 2025, compared to 111.36 points in July 2024. This increase reflects moderate inflationary pressures within the economy, as reported by GASTAT.
Housing and rental impacts
The inflation rate of 2.1 percent in July signifies a deceleration from previous months, maintaining the lowest levels recorded in the last five months. Inflationary pressures varied across different sectors, with the housing, water, electricity, and gas segment—accounting for approximately 21 percent of the CPI—remaining a significant contributor to inflationary trends. Rental prices, particularly for villas, saw increases that impacted the housing component of consumer prices.
At the wholesale level, the modest 0.1 percent monthly decline is partly attributed to reductions in prices for metal products, machinery, equipment, ores, and minerals. In contrast, there were price increases for various transportable goods, as well as agricultural and fishery products. Notably, refined petroleum products and furniture experienced significant price rises, contributing to the overall movements in wholesale prices.
