RIYADH — Saudi Arabia’s annual inflation rate reached 1.8 percent in August 2026 compared with the same month in 2025, according to data from the General Authority for Statistics (GASTAT). The annual increase was mainly driven by a 3.9 percent rise in housing, water, electricity, gas and other fuel prices, while food and beverage prices increased by 1.4 percent and transport prices rose by 2 percent. Housing rents also increased by 3.9 percent year-on-year, while prices for personal care, social protection and other goods and services rose by 3.5 percent. Within the latter category, prices of other personal effects climbed by 13.3 percent, driven by a 14.4 percent increase in jewelry and watch prices. Recreation, sport and culture prices increased by 2.8 percent, driven by a 4.7 percent rise in holiday package prices. **media[2765821]** In contrast, furnishings, household equipment and routine home maintenance prices declined by 0.6 percent, while clothing and footwear prices fell by 0.5 percent. Housing, water, electricity, gas and other fuels was the largest contributor to annual inflation, accounting for 0.8 percentage points, while food and beverages and transport each contributed 0.3 percentage points. On a monthly basis, consumer prices edged up by 0.1 percent in August compared with July. Housing-related prices increased by 0.2 percent, while transport rose by 0.6 percent and personal care, social protection and other goods and services increased by 0.8 percent. Meanwhile, food and beverage prices declined by 0.1 percent month-on-month, while restaurant and accommodation services fell by 0.4 percent.
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