Saudi Inflation Holds at 1.8% in July 2026

Annual inflation in Saudi Arabia held steady at 1.8% year-on-year in July 2026, marking the third consecutive month at the same level after readings of 1.8% in both May and June. The Consumer Price Index (CPI) rose to 105.6 points in July, up 0.2% from 105.4 points in June.

Housing costs remained the biggest driver of the annual rate. Prices in the housing, water, electricity, gas, and other fuels group climbed 4.2% year-on-year, adding 0.8 percentage points to the headline figure. Actual housing rents rose 4.3% compared with a year earlier. On a monthly basis, this group increased 0.9%, boosted by a 7.1% jump in the electricity, gas, and other fuels category.

Other sectors saw modest movement. Food and beverage prices rose 1.5% year-on-year, up slightly from 1.4% in June. Restaurants and hotels increased 2.0% (from 1.5%), while education edged up to 1.2% (from 1.1%). The wholesale price index rose 5.0% year-on-year, compared with 4.8% the previous month.

Why it matters

For residents and expats managing monthly budgets, the numbers confirm that overall living costs remain stable, with housing and rent the clearest pressure point for households in cities like Riyadh and Jeddah. Saudi Arabia's inflation reading is in line with market expectations and sits among the lower rates globally.

Earlier data for the first quarter of 2026 also showed inflation at 1.8% year-on-year and 0.4% quarter-on-quarter. Full-year 2026 average inflation is projected at around 2.1%, with a forecast easing to 1.8% in 2027.

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