Saudi Producer Prices Rise 8.5% in June 2026

Producer prices in Saudi Arabia rose 8.5% year on year in June 2026, driven mainly by higher manufacturing costs,

Manufacturing prices, which carry the largest weight in the index, increased 9.0% compared with the same month a year earlier. The sharpest annual gains came in chemicals and chemical products, up 14.4%, followed by wearing apparel at 14.3% and refined petroleum products at 13.2%.

Other segments also posted increases over the year. Basic metals rose 8.4%, while food products edged up 4.6%. Prices tied to water supply, sewerage, waste management and remediation climbed 7.9%, and electricity, gas, steam and air-conditioning supply increased 2.4%.

On a monthly basis, the producer price index rose 0.6% in June 2026 compared with May 2026, pointing to continued but moderate upward pressure.

Why it matters

The producer price index measures the prices producers receive for goods and services before they reach retail shelves. Sustained increases at this stage can eventually feed into consumer prices, affecting households and businesses across the Kingdom. Rising costs in chemicals, refined fuel and apparel are closely watched because they touch a wide range of everyday products and industrial supply chains in Riyadh, Jeddah and beyond.

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