Saudi Trade Surplus Narrows as Wholesale Inflation Rises

Saudi Arabia recorded a merchandise trade surplus of SAR 17.3 billion in June 2026, the smallest monthly surplus in five months, as both exports and imports eased. The figure was about 21% lower than in May 2026 and roughly 10% down year-on-year, marking the first annual decline in several months.

Merchandise exports reached SAR 87.8 billion during the month, down between about 4.5% and 9.2% from the previous month depending on the statistical basis used. Imports came in at around SAR 70.4 billion, a monthly decline of roughly 3% to 5.8%.

Despite the softer June reading, the wider picture for the year remained strong. In the first half of 2026, the trade surplus totaled about SAR 155 billion, while total foreign trade value exceeded SAR 1 trillion. First-quarter figures had shown a surplus of roughly SAR 90.5 billion, up about 60% from the fourth quarter of 2025 and around 43.7% higher year-on-year.

Wholesale prices climb

At the same time, wholesale price inflation continued to rise. The Wholesale Price Index climbed to 5.0% year-on-year in July 2026, the highest level since August 2022, after readings of 3.5% in February and 3.3% in March. The steepest annual increase in July was in "other transportable goods, except metal products, machinery and equipment" at 9.7%, while food products, beverages, tobacco and textiles edged down 0.6%.

Consumer price inflation stayed more contained at 1.8% year-on-year in July 2026, led by housing, water, electricity, gas and other fuels at 4.2%. The General Producer Price Index stood at 111.2 in June, with manufacturing at 112.1 and water and waste-management services at 120.9.

For residents and businesses, the numbers point to steady import activity and rising input costs that could gradually feed through to some prices, even as overall consumer inflation remains moderate.

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