Saudi Producer Prices Rise 8.5% in June 2026

Saudi Arabia's producer price index (PPI) rose 8.5% year-on-year in June 2026 compared with June 2025, reflecting continued upward pressure on wholesale prices across the Kingdom's key production sectors.

The increase was mainly driven by a 9.0% year-on-year rise in manufacturing prices. Prices in the electricity, gas, steam and air conditioning supply sector climbed 2.4% over the year, while water supply, sewerage, waste management and remediation activities rose 7.9%.

On a month-on-month basis, the general PPI edged up 0.6% in June 2026 compared with May, with the manufacturing sub-index also rising 0.6%. The monthly increase in manufacturing was led by refined petroleum products (up 1.8%), other economic activities (up 2.2%), food products (up 1.3%) and fabricated metal products, excluding machinery and equipment (up 0.1%).

Not all sectors moved higher over the month. Prices for water supply, sewerage and waste management were unchanged, while the electricity, gas, steam and air conditioning supply sector slipped 0.1% month-on-month.

Why it matters

The producer price index tracks prices at the factory and wholesale level before goods reach shops and households, making it an early signal of where consumer costs may head. The June 2026 reading follows a 9.1% annual rise in April 2026 and a 5.5% increase in March, pointing to a sustained pattern of higher input costs, particularly in manufacturing and refined petroleum. The index uses 2023 as its base year.

For residents and businesses in Riyadh, Jeddah and beyond, movements in producer prices can gradually filter through to retail prices for food, utilities and manufactured goods over the coming months.

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