RIYADH: Saudi Arabia’s annual inflation rate slowed in July to 2.1 percent, down from 2.3 percent in June, as softer price gains in some categories offset persistent housing pressures, official data showed. 

The figures, published in the latest report from the General Authority for Statistics, revealed that housing, water, electricity, gas and fuel posted the steepest annual increase among major categories, climbing 5.6 percent. 

That was driven by a 6.6 percent rise in rents, including a 6.4 percent increase in villa rentals. The housing component accounts for 25.5 percent of the consumer price index basket, making it a key driver of the headline figure.

The inflation trend aligns with the Kingdom’s goal of balancing economic growth with price stability as part of its Vision 2030 strategy to diversify the economy beyond oil. The government’s November 2024 budget projected inflation to remain steady at 1.9 percent in 2025, up slightly from 1.7 percent in 2024. 

“The annual inflation rate in the Kingdom witnessed a relative slowdown in the pace of growth during July 2025, reaching 2.1 percent, compared to 2.3 percent in the previous June,” GASTAT said. 

This comes as a July report from Kuwait-based non-banking firm Kamco Invest said inflation across Gulf Cooperation Council countries remained stable in the second quarter, despite heightened geopolitical instability. It added that the conflict’s limited impact on GCC inflation was largely due to gradual, rather than sudden, increases in commodity and shipping costs. 

Sectoral breakdown 

Food and beverage prices increased by 1.6 percent year on year in July, driven by a 2.6 percent increase in the costs for meat and poultry. 

The authority said expenses for personal goods and services rose by 4.3 percent compared to the same period in the previous year. This was due to a 24.7 percent rise in the prices of jewelry, watches, and precious antiques. 

Restaurant and hotel costs edged up 1.4 percent year on year, while education prices advanced by 1.1 percent during the same period. 

Furnishing and home equipment prices declined by 2 percent, expenses for clothing and footwear decreased by 0.4 percent, and transportation prices dropped by 0.3 percent during the same period. 

Month on month, Saudi Arabia’s Consumer Price Index was stable in July, reflecting unchanged prices across multiple sectors. Transportation, restaurants, and hotels recorded no change, while clothing and footwear, health, telecommunications, and tobacco also held steady. 

Prices of housing, water, electricity, gas, and fuel rose 0.2 percent. 

Entertainment costs also increased 0.2 percent from June, while education expenses edged down 0.1 percent. 

The report added that food and beverage prices fell 0.2 percent, followed by a 0.1 percent decline in personal goods and services. 

Wholesale Price Index  

In a separate report, GASTAT said Saudi Arabia’s Wholesale Price Index rose 2.1 percent in July from a year earlier, driven by a 4.1 percent increase in prices of transportable goods. 

“The prices of other transportable goods, except metal products, machinery, and equipment, increased by 4.1 percent, driven by an 8.3 percent rise in the prices of refined petroleum products, and an 8.6 percent increase in the prices of furniture and other transportable goods,” said GASTAT. 

Prices of agricultural and fishery products rose 4.4 percent, while metal products edged up 0.1 percent. 

Food products, beverages, tobacco, and textiles also increased 0.3 percent. 

Prices of ores and minerals fell 0.8 percent, driven by an equivalent drop in stone and sand prices. 

Average prices 

In a separate analysis, GASTAT said green beans and local eggs saw the largest month-on-month increases in July, both rising 3.2 percent. 

Imported chilled sheep meat and hay also recorded notable gains, up 2.2 percent and 2 percent, respectively. 

The steepest declines were in Pakistani mangoes and medium African lemons, with prices falling 12.7 percent and 11.5 percent, respectively.