Saudi Producer Prices Rise 5.1% in August 2026

Producer prices in Saudi Arabia rose 5.1% in August 2026 compared with the same month a year earlier, with the overall producer price index reaching 108.2. Month-on-month, prices remained broadly stable.

Manufacturing, the largest contributor to the index, climbed 5.3% year-on-year, though it edged down 0.1% on a monthly basis. Prices for water supply, sewerage, waste management, and remediation rose 4.2% year-on-year and 0.3% month-on-month, while electricity, gas, steam, and air-conditioning supply increased 2.2% year-on-year and 1.0% over the month.

Several product categories recorded notable annual gains. Apparel prices led with a 13.4% rise, followed by chemicals and chemical products at 10.5% and basic metals at 8.6%. Food-product prices increased 5.4%, refined petroleum products rose 4.8%, and chemicals helped lift the broader manufacturing figure.

Why it matters

The producer price index tracks the prices factories and producers receive for their goods before they reach retailers and consumers. Movements at this stage can shape the cost of everyday items over time, so the stronger annual gains in food, apparel, and basic metals are worth watching for households and businesses across the Kingdom.

At the same time, the broadly flat month-on-month reading suggests short-term price pressures were contained in August, offering some stability for companies planning their costs and for residents budgeting their spending.

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