Saudi Arabia is expected to keep inflation at modest levels through 2026, 2% to 2.7% for the year, depending on which version of the forecast is referenced.
An earlier Article IV projection put average inflation at around 2.2% in 2026. A separate, later estimate referenced in October 2026 pointed to approximately 2.7%. The difference reflects the forecast version and its publication date rather than a sharp change in the underlying outlook.
The projections follow a period of relatively subdued price pressure. Inflation in the Kingdom had slowed to below 2% at the beginning of 2026, pointing to continued price stability across the economy.
Why it matters
For residents and expatriates in cities such as Riyadh and Jeddah, moderate inflation means household costs — from rent and groceries to everyday services — are expected to rise only gradually rather than sharply over the year. Stable prices also support family budgets and give businesses greater confidence in planning.
As with any economic forecast, the figures remain projections and may be revised as new data becomes available through the year.
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