Saudi Inflation Holds at 1.8% as Rents, Food Rise

Inflation in Saudi Arabia held steady at 1.8% year on year in June 2026, but the latest figures show household budgets remain under pressure from rising housing and food costs. On a monthly basis, consumer prices edged up 0.2%.

The biggest driver continues to be housing, water, electricity, gas, and other fuels, which rose 3.5% compared with a year earlier. Within that group, actual housing rents jumped 4.4% year on year — a key concern for renters in cities such as Riyadh and Jeddah.

Food and beverage prices increased 1.4% year on year and 0.7% month on month, adding to weekly grocery bills for many families. Transport costs also rose, up 1.7% over the year and 0.4% for the month.

A steady headline, uneven pressures

Although the overall inflation rate has stayed close to 1.8% through much of 2026, the underlying picture is uneven. In the first quarter, inflation was also 1.8%, with housing-related costs up 4.1%. In January, the same category rose 4.2% while food and beverages actually dipped 0.6% month on month. By March, housing costs were up 3.9% and food prices had turned positive again, rising 0.3%.

For residents and expat households, the takeaway is clear: while headline inflation looks modest, rents and food remain the two areas where costs are climbing fastest. Families reviewing their monthly spending may find housing renewals and grocery bills accounting for a larger share than the overall inflation figure suggests.

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