Saudi Inflation Holds at 1.8% in July 2026

Annual inflation in Saudi Arabia held at a modest 1.8% in July 2026, measured by the Consumer Price Index (CPI), keeping the pace of rising prices steady for residents across the Kingdom.

The CPI reached 105.6 points in July 2026, compared with 103.8 points a year earlier. On a monthly basis, consumer prices edged up by around 0.2% between June and July 2026. Inflation has remained within a narrow band of 1.7% to 1.8% throughout every month of 2026 so far.

What pushed prices up

The main driver was the group covering housing, water, electricity, gas and other fuels, which recorded an annual increase of about 4.2% — the highest among all CPI divisions. Within this group, actual housing rents rose by roughly 4.3% year-on-year. This category alone contributed around 0.8 percentage points to the overall 1.8% inflation rate.

Not all categories saw increases. Furnishings, household equipment and routine household maintenance recorded an annual rate of about -0.5%, meaning prices in that group actually fell over the year.

Why it matters

For families and expats, housing costs remain the largest pressure on household budgets, particularly for renters. Regionally, annual inflation rose in Makkah, Madinah, the Eastern Province, Asir, Northern Borders, Al Baha and Al Jouf, while other regions saw either lower or stable rates compared with June 2026. The steady, low inflation overall suggests the cost of living continues to grow at a manageable pace, even as rents remain a key factor to watch.

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