Saudi Inflation Holds at 1.8% in August 2026

Saudi Arabia's annual inflation rate held steady at 1.8% in August 2026, unchanged for the fourth consecutive month and in line with market expectations. The reading covers the twelve months ending in August and reflects a period of relative price stability across the Kingdom.

The Consumer Price Index rose 1.8% compared with August 2025, while on a monthly basis prices edged up just 0.1% from July 2026. Inflation has remained at 1.8% since May 2026, marking a stable stretch after the rate eased from 2.1% recorded in December 2025.

Housing, water, electricity, gas and other fuels were the biggest driver of the annual increase, with prices up 3.9% year-on-year. Transport costs rose 2.0%, while food and beverage prices climbed 1.4% over the same period.

Why it matters for residents

For households in Riyadh, Jeddah and across the Kingdom, steady inflation means everyday costs are rising slowly and predictably. Housing remains the main pressure point on family budgets, a factor worth keeping in mind for both residents and expats planning rent and monthly spending.

Separately, the Wholesale Price Index rose 4.6% year-on-year in August 2026 but fell 0.2% compared with July, pointing to easing pressure at the wholesale level. The figures were published as part of the regular monthly statistical reporting on prices in the Kingdom.

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