INSEAD Day 4 - 728x90

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Saudi Arabia’s inflation rises to 1.8 percent in May on higher rents

GASTAT said the rise was driven primarily by a 3.7% year-on-year increase in housing, water, electricity, gas and other fuels.
  • The cost-of-living index increased to 105.3 points in May from 103.5 points a year earlier.
  • GASTAT said the rise was driven primarily by a 3.7% year-on-year increase in housing, water, electricity, gas and other fuels, reflecting a 4.7% rise in rents.

Dubai, UAE — Saudi Arabia’s annual inflation rate rose to 1.8% in May 2026, up from April, as higher housing, transport and hospitality costs pushed consumer prices higher, according to data released by the General Authority for Statistics (GASTAT).

The cost-of-living index increased to 105.3 points in May from 103.5 points a year earlier.

GASTAT said the rise was driven primarily by a 3.7% year-on-year increase in housing, water, electricity, gas and other fuels, reflecting a 4.7% rise in rents. Transport costs increased 1.5%, while restaurant and hotel prices rose 1.7%.

Among major expenditure categories, personal goods, social protection and other goods and services recorded the largest annual increase at 5.6%, followed by housing and utilities at 3.7% and recreation, sports and culture at 2.6%.

Prices also rose for insurance and financial services, education, food and beverages, communications, tobacco and health services.

Meanwhile, apparel and footwear prices fell 0.1%, while furnishing, household equipment and maintenance costs declined 0.5%.

GASTAT said inflation performance varied across the kingdom’s regions compared with April. Six regions — Makkah, Madinah, the Eastern Province, Aseer, Hail and Al Jouf — recorded higher annual inflation rates, while the remaining regions either saw slower inflation or remained unchanged.

Al Jouf registered the highest inflation rate in May at 3.4%, followed by the Northern Borders region at 2.9%. Jazan recorded the lowest rate at 0.8%.

The statistics authority also noted that it has enhanced its consumer price index methodology, updating the base year to 2023, revising basket weights and expanding geographic coverage to all regions in line with international standards.