Saudi Inflation Steady at 1.8%, PMI Hits 53.1

Saudi Arabia's economy showed steady momentum in the latest 2026 figures, with annual inflation holding at 1.8% and the non-oil private sector Purchasing Managers' Index (PMI) reaching 53.1 points for July 2026. The data, released in early September 2026, points to controlled price growth alongside continued business expansion.

The 1.8% annual inflation rate, based on the Consumer Price Index, was recorded across several months of 2026, including January, May, June and July. The main drivers were rising costs in housing, water, electricity, gas and other fuels, with additional contributions from transport, food and beverages, and restaurant and accommodation services.

On the business side, a PMI reading of 53.1 signals ongoing expansion, since any figure above 50 indicates growth. July 2026 marked at least the fourth consecutive month of improving business conditions, supported by rising new orders, higher output, and increased employment in the private sector.

Why it matters

For residents and expats across Riyadh, Jeddah and beyond, moderate inflation means everyday costs — from rent and utilities to groceries and dining — are rising at a manageable pace rather than climbing sharply. A steady price environment helps households plan spending with more confidence.

The strong PMI reading, meanwhile, reflects a healthy job-creating private sector, which can translate into more employment opportunities and a broader range of goods and services for the community. Together, the two indicators suggest the Saudi economy continues to grow while keeping cost pressures in check.

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