Saudi Producer Prices Rise 8.5% in June, Led by Manufacturing

Saudi Arabia's Producer Price Index (PPI) climbed 8.5% year-on-year in June 2026, The rise was driven mainly by higher manufacturing prices, which increased 9% compared with the same month a year earlier.

Within the manufacturing sector, the sharpest annual gains came from chemicals and chemical products, up about 14.4%, and wearing apparel, up about 14.3%. Refined petroleum products rose about 13.2%, while basic metals increased about 8.4% and food products edged up about 4.6% year-on-year.

Not all categories rose. Producer prices for fabricated metal products (excluding machinery and equipment) fell about 3.5%, other economic activities within manufacturing dropped about 3.5%, and other non-metallic mineral products declined about 2.1% over the year.

By main activity, water supply, sewerage, waste management and remediation prices rose about 7.9% year-on-year, while electricity, gas, steam and air-conditioning supply increased about 2.4%.

On a monthly basis, the overall PPI rose about 0.6% in June compared with May, with manufacturing also up about 0.6%. Refined petroleum products gained about 1.8% and food products rose about 1.3% month-on-month, while chemicals slipped about 1% and basic metals fell about 0.5%.

Why it matters

The PPI tracks the prices producers receive for their goods before they reach consumers, so it offers an early signal of cost pressures that can eventually influence retail prices. For residents and businesses in Riyadh, Jeddah and across the Kingdom, sustained increases in manufacturing and food-related prices are worth watching, as they may gradually feed through to everyday spending.

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