Saudi Producer Prices Up 5.1% in August 2026

Saudi Arabia's producer-price index rose 5.1% year-on-year in August 2026, reflecting higher costs across several industrial sectors even as consumer inflation remained subdued.

Manufacturing prices, which carry a large weight in the index, climbed 5.3% over the year. Within manufacturing, apparel recorded the sharpest increase at 13.4%, followed by chemical products at 10.5% and basic metals at 8.6%. Food-product prices rose 5.4% and refined petroleum products increased 4.8%.

Other categories saw more moderate gains. Prices for water supply, sewerage, waste management and remediation rose 4.2%, while electricity, gas, steam and air-conditioning supply edged up 2.2%.

On a monthly basis, the index was broadly stable in August 2026, with manufacturing prices slipping 0.1% from the previous month, suggesting price pressures may be easing in the short term.

Why it matters

Producer prices measure costs at the factory and wholesale level before goods reach shoppers. Although the annual rise was notable, it has not fully fed through to households: consumer-price inflation stood at just 1.8% year-on-year in August 2026. The wholesale-price index rose 4.6% over the same period. For residents and businesses in the Kingdom, the gap between producer and consumer prices indicates that higher input costs have so far been largely absorbed along the supply chain rather than passed on to end buyers.

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