RIYADH: Saudi Arabia’s producer prices rose 0.4 percent in January from a year earlier, supported by higher utility costs, as wholesale inflation remained contained at the start of 2026.
The Kingdom’s producer price index stood at 104.4 in the first month of the year, slightly up from 104 a year earlier and 103.5 in December, according to data released by the General Authority for Statistics.
Producer prices, which measure changes received by domestic producers for goods and services, are closely watched as an early indicator of inflation trends.
This comes as Saudi Arabia’s annual inflation rate eased to 1.7 percent in February, the lowest in a year, with stable food prices helping offset continued pressure from housing rents, according to a separate GASTAT report.
In its latest PPI report, GASTAT stated: “This increase was driven by a 0.1 percent rise in manufacturing prices, a 1.8 percent increase in electricity, gas, steam, and air conditioning supply prices, and an 11.5 percent rise in water supply, sewerage, and waste management and remediation prices.”
The index is made up of three main components: manufacturing, which accounts for 91.2 percent, followed by electricity, gas, steam and air conditioning supply at 7.7 percent, and water supply, sewerage, waste management and remediation activities at 1.1 percent.
The annual increase in manufacturing prices was supported by a 0.2 percent rise in food products, alongside a 2.7 percent increase in basic metals.
In January, prices for fabricated metal products and wearing apparel also rose 4 percent and 5.6 percent, respectively.
By contrast, prices for refined petroleum products declined 0.6 percent year on year, while chemicals and chemical products fell 0.1 percent during the same period.
Electricity, gas, steam, and air conditioning supply prices increased 1.8 percent in January compared with the same month a year earlier.
Prices for water supply, sewerage, waste management, and remediation activities rose 11.5 percent year on year.
Compared with December, manufacturing prices increased 1 percent in January, driven by a 1.8 percent rise in refined petroleum products.
Electricity, gas, steam, and air conditioning supply prices rose 0.4 percent month on month, while water supply, sewerage, and waste management prices increased 0.2 percent over the same period.
