RIYADH: Saudi Arabia’s annual inflation rate slowed to 1.7 percent in February, the lowest level in a year, as stable food prices helped offset continued pressure from housing rents.
The consumer price index eased from 1.8 percent in January to 1.7 percent year on year, matching the level recorded in February 2025.
The Kingdom’s inflation trajectory broadly aligns with projections by the International Monetary Fund, which said in October that Saudi Arabia is expected to maintain annual inflation of about 2 percent in 2026.
In its latest report, GASTAT stated: “This increase was mainly driven by a rise in housing, water, electricity, gas, and other fuel prices by 4.1 percent, transport prices by 1.4 percent, and prices of restaurant and accommodation services by 1.9 percent.”
The data further showed that housing, water, electricity, gas, and other fuels rose 4.1 percent in February 2026, mainly driven by a 5.1 percent increase in actual housing rents.
Transport prices also climbed 1.4 percent, supported by a 5.6 percent rise in passenger transport services, while restaurant and accommodation services increased 1.9 percent due to higher accommodation costs.
The personal care, social protection and miscellaneous goods and services category surged 8.2 percent, largely reflecting a 26.8 percent jump in other personal effects, particularly jewelry and watch prices, which rose 29 percent.
The data also showed that prices in the insurance and financial services category rose 1 percent, supported by a 1.3 percent increase in insurance costs.
The recreation, sport and culture segment climbed 1.8 percent, driven by a 2.6 percent rise in package holiday prices, while education services increased 1.4 percent, largely due to a 1.6 percent uptick in secondary education fees.
As for information and communications prices, they edged up 1.1 percent, reflecting a 2 percent rise in that category.
In contrast, furnishings, household equipment and routine maintenance declined 0.9 percent, mainly due to a 3.4 percent drop in furniture, furnishings, and loose carpet prices.
Prices for food and beverages, as well as clothing and footwear, remained largely stable during the period.
“On a monthly basis, the CPI in February 2026 recorded relative stability compared to January 2026. While the detailed analysis of the index showed varying changes at the level of the sections,” GASTAT said.
Housing, water, electricity, gas and other fuels recorded an increase, mainly due to a 0.3 percent rise in actual housing rents.
Prices also climbed in several other categories, including transport by 0.2 percent, restaurants and accommodation services by 0.3 percent, and personal care and miscellaneous goods and services by 0.6 percent, as well as recreation, sport and culture by 0.8 percent, and health by 0.2 percent.
On the other hand, prices declined in food and beverages by 0.5 percent, furnishings, household equipment and routine maintenance by 0.4 percent, clothing and footwear by 0.3 percent, and insurance and financial services by 0.1 percent.
As for education services, health and tobacco, prices remained largely unchanged in February 2026.
