Saudi Inflation Rises to 1.9% in September on Housing

Annual inflation in Saudi Arabia edged up to 1.9% in September 2026, compared with 1.8% in August, with higher housing costs the main driver. On a monthly basis, consumer prices were unchanged from August.

The housing, water, electricity, gas, and other fuels group rose 3.6% year-on-year, making it the biggest contributor to the overall increase. This category alone added 0.7 percentage points to annual inflation.

Within housing, actual rents paid by residents increased 3.5% compared with the same month last year, and 0.2% from the previous month. Rising rents continue to weigh on household budgets for many families and expats in cities such as Riyadh and Jeddah.

Other categories

Transport prices rose 2.3% year-on-year, while food and beverage prices increased 1.4% over the same period. The modest pace of overall inflation suggests that price pressures outside of housing remained relatively contained.

For the community, the figures mean day-to-day costs are rising at a measured pace, though housing remains the area where residents are most likely to feel the squeeze. Households renting or planning to move may want to factor in continued upward pressure on rents when budgeting for the year ahead.

---

Stay updated with the latest news, events, sports updates, business insights, real estate and lifestyle stories on Saudi Living — the leading online platform for residents, expats, and visitors in Saudi Arabia.

Follow Saudi Living for daily updates:

• Instagram - @saudiliving
• X - @saudiliving
• Facebook - @saudiliving
• YouTube - @saudiliving