RIYADH: Saudi Arabia’s annual inflation edged up to 1.9 percent in September, driven primarily by higher housing, transport and food costs, while consumer prices remained unchanged from the previous month.  The housing, water, electricity, gas and other fuels category recorded the largest annual increase among heavily weighted components, rising 3.6 percent, according to the General Authority for Statistics.   Transport prices increased 2.3 percent from September 2025, while food and beverages rose 1.4 percent.   The overall rate was 0.1 percentage points up on the August reading. The inflation data comes amid escalating regional conflict, with attacks on shipping and energy infrastructure raising concerns over oil supplies, freight costs and broader economic uncertainty across the Gulf.  Housing drives inflation in Saudi Arabia   Housing and utility costs contributed 0.7 percentage points to the annual inflation rate, making the category the largest single driver of price growth.  “The prices of the housing, water, electricity, gas and other fuels division increased by 3.6 percent as a result of the increase in the prices of the actual rental group for housing by 3.5 percent,” the report stated.  Food and beverages and transport each added 0.3 percentage points to headline inflation.   Prices for personal care, social protection and miscellaneous goods and services rose 3.3 percent annually. The increase reflected an 11.9 percent rise in other personal effects, including a 12.9 percent increase in jewelry and watch prices.   Recreation, sport and culture costs climbed 2.5 percent, led by a 4.5 percent increase in holiday package prices.   Insurance and financial services rose 2 percent, while restaurant and accommodation services increased 1.9 percent. Education costs were up 1.3 percent.   These increases were partially offset by a 0.5 percent decline in furnishings, household equipment and routine maintenance costs, alongside a 0.4 percent fall in clothing and footwear prices.   Regional inflation trends  This comes amid uneven inflation trends across neighbouring Gulf markets, with Dubai’s annual inflation easing to 5.03 percent in September from 5.54 percent in August. The emirate’s consumer price index declined 0.05 percent month on month.  Oman’s annual inflation also slowed, reaching 3.2 percent in September, compared with 3.4 percent in August. Bahrain’s latest official data showed annual inflation at 3 percent in August, while Kuwait’s most recent reading was 2.19 percent in July, with prices rising 0.21 percent from June. Qatar’s latest directly comparable annual inflation rate was 2.21 percent in June.  Monthly prices remain stable   Saudi Arabia’s overall CPI was unchanged from August as increases in some categories were balanced by declines elsewhere.   Education recorded the largest monthly increase at 1.2 percent. Food and beverages, housing and utilities, and personal care each rose 0.1 percent. Actual housing rents increased 0.2 percent during the month.   Recreation, sport and culture prices declined 0.6 percent, while restaurants and accommodation services fell 0.5 percent. Clothing and footwear dropped 0.3 percent, and household furnishings declined 0.2 percent.   GASTAT compiles the index using a 582-item consumer basket based on spending patterns identified in the 2023 Household Income and Expenditure Survey.