Saudi Inflation Steady at 1.8% in August 2026

Saudi Arabia's annual inflation rate held steady at 1.8% in August 2026, remaining unchanged for the fourth consecutive month, On a monthly basis, the Consumer Price Index (CPI) edged up just 0.1% compared with July 2026, pointing to continued price stability across the country.

The main driver of the annual increase was housing costs. Prices in the housing, water, electricity, gas, and other fuels category rose 3.9% compared with August 2025, keeping housing at the top of the list of factors pushing the overall index higher.

Transport prices climbed 2.0% year-on-year, while food and beverage prices increased 1.4% over the same period. Together, these categories reflect the everyday spending that most affects households in Riyadh, Jeddah, and other cities.

Producer prices show a mixed picture

On the wholesale side, the Wholesale Price Index (WPI), which tracks producer prices, rose 4.6% compared with August 2025. However, it slipped 0.2% on a monthly basis versus July 2026, signalling some easing in producer-level costs during the month.

For residents and expats, a low and stable inflation rate means the cost of living is holding relatively firm, though housing remains the biggest pressure point on family budgets. The figures are calculated using the existing national consumer basket, and there have been no reported changes in 2026 that alter how CPI or inflation are measured.

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