Saudi Arabia’s General Authority for Statistics (GASTAT) announced that the Kingdom’s annual inflation rate remained unchanged at 1.8% in June 2026, matching the rate recorded in May and highlighting the country’s continued price stability despite global inflationary pressures.
On a monthly basis, the Consumer Price Index (CPI) increased by 0.2% compared with May, driven primarily by higher transportation, food, and housing costs.
Housing, Transport, and Food Lead Price Growth
According to GASTAT, the annual increase was mainly driven by:
- Housing, water, electricity, gas, and other fuels, which rose by 3.5%.
- Transportation costs, up 1.7%.
- Food and beverages, which increased by 1.4%.
Housing continued to be the largest contributor to overall inflation due to its significant weight in the consumer basket.
Modest Monthly Increase
Compared with May, consumer prices edged up by 0.2% in June as a result of:
- A 0.7% increase in food and beverage prices.
- A 0.4% rise in transportation costs.
- A 0.1% increase in housing, utilities, and fuel prices.
The figures indicate that price growth remains moderate across most sectors of the Saudi economy.
Among the Lowest Inflation Rates in the G20
Hisham Abu Jamea, Senior Advisor at Naif Al Rajhi Company, said Saudi Arabia continues to record one of the lowest inflation rates among G20 economies, reflecting the resilience of the Kingdom’s economy despite ongoing global challenges.
He also noted that government authorities continue monitoring markets to prevent unjustified price increases from being passed on to consumers, while acknowledging that housing remains the primary source of inflationary pressure.
Updated CPI Methodology
Saudi Arabia’s Consumer Price Index is calculated using a basket of 582 goods and services based on the 2023 Household Income and Expenditure Survey.
Since August 2025, GASTAT has been publishing inflation data using an updated methodology designed to improve statistical accuracy through broader geographic coverage, an expanded consumer basket, and enhanced data collection sources aligned with international best practices.
