Saudi Inflation at 1.8% in July 2026, Rents Rise

Saudi Arabia's annual consumer inflation stood at 1.8% in July 2026, with housing and related costs remaining the main driver of price increases across the Kingdom's cities.

The category covering housing, water, electricity, gas, and other fuels climbed 4.2% year on year. Within that group, actual housing rents rose 4.3% compared with the same month a year earlier, reflecting continued demand for accommodation in urban areas.

The July figure mirrors the picture seen earlier in the year. In January 2026, the annual inflation rate was also 1.8%, with housing-related costs up 4.2% and actual rentals up a sharper 5.2%. The slight easing in rental growth between January and July suggests the pace of increase has moderated somewhat over recent months.

Why it matters

For residents and expats in Riyadh, Jeddah, and other major cities, housing typically represents one of the largest household expenses. A steady 1.8% headline inflation rate signals broad price stability, but the continued rise in rents means many tenants may still feel pressure when renewing leases or searching for new homes.

With urban demand growing, rental costs remain a key factor shaping the cost of living for households across the Kingdom. Saudi Living will continue to track inflation trends and housing costs as new figures are released.

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