{"id":57405,"date":"2026-07-16T13:10:28","date_gmt":"2026-07-16T10:10:28","guid":{"rendered":"https:\/\/thesauditimes.net\/en\/?p=57405"},"modified":"2026-07-16T13:10:28","modified_gmt":"2026-07-16T10:10:28","slug":"saudi-producer-prices-rise-7-5-in-may-as-manufacturing-costs-climb","status":"publish","type":"post","link":"https:\/\/thesauditimes.net\/en\/saudi-producer-prices-rise-7-5-in-may-as-manufacturing-costs-climb\/","title":{"rendered":"Saudi Producer Prices Rise 7.5% in May as Manufacturing Costs Climb"},"content":{"rendered":"<div>\n<div>\n<section dir=\"auto\">\n<div>\n<div>\n<div>\n<div dir=\"auto\">\n<div class=\"flex w-full flex-col gap-1 empty:hidden\">\n<div>\n<p>Saudi Arabia&#8217;s Producer Price Index (PPI) increased by 7.5% year-on-year in May 2026, driven by rising manufacturing costs, particularly in the chemicals and refined petroleum sectors, according to new data released by the General Authority for Statistics (GASTAT). The figures highlight continued cost pressures across the Kingdom&#8217;s industrial sector despite relatively stable consumer inflation.<\/p>\n<p>Manufacturing, the largest component of the Producer Price Index, recorded an annual increase of 8%, led by a 15.2% surge in chemicals and chemical products. Wearing apparel prices rose 12.7%, while refined petroleum products increased by 10.7%.<\/p>\n<p>Other industrial categories also posted solid gains, with basic metals rising 9.8% and food products increasing 3.2%, reflecting broad-based growth in production costs across key manufacturing industries.<\/p>\n<p>The latest data comes shortly after Saudi Arabia reported annual consumer inflation of 1.8% in June, suggesting that higher production costs have not yet significantly translated into consumer prices.<\/p>\n<p>According to GASTAT, the annual increase in producer prices was also supported by a 2% rise in electricity, gas, steam, and air conditioning supply, as well as an 8.3% increase in water supply, sewerage, waste management, and remediation services.<\/p>\n<p>Despite the strong annual performance, producer prices declined 1.8% on a monthly basis in May compared with April, reversing part of the gains recorded in previous months.<\/p>\n<p>The monthly decline was primarily driven by a 2% drop in manufacturing prices, including a 6.3% decrease in refined petroleum products, alongside lower prices for fabricated metal products, excluding machinery and equipment, as well as declines in apparel and several other economic activities.<\/p>\n<p>Meanwhile, chemicals and chemical products edged up 0.5% month-on-month, while basic metals recorded a sharp 9.5% increase. Water supply and waste management services also rose by 1.9%, whereas electricity and gas prices remained largely unchanged.<\/p>\n<p>The Producer Price Index is a key economic indicator that measures changes in prices received by producers before goods reach consumers. Economists closely monitor the index because sustained increases in production costs often serve as an early indicator of future inflation and may eventually be reflected in retail prices across the economy.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Saudi Arabia&#8217;s Producer Price Index (PPI) increased by 7.5% year-on-year in May 2026, driven by rising manufacturing costs, particularly in the chemicals and refined petroleum sectors, according to new data released by the General Authority for Statistics (GASTAT). The figures highlight continued cost pressures across the Kingdom&#8217;s industrial sector despite relatively stable consumer inflation. Manufacturing, the largest component of the Producer Price Index, recorded an annual increase of 8%, led by a 15.2% surge in chemicals and chemical products. Wearing apparel prices rose 12.7%, while refined petroleum products increased by 10.7%. Other industrial categories also posted solid gains, with basic<\/p>\n","protected":false},"author":1,"featured_media":57406,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[12852],"tags":[],"class_list":["post-57405","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-finance"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Saudi Producer Prices Rise 7.5% in May as Manufacturing Costs Climb | The Saudi Times<\/title>\n<meta name=\"description\" content=\"Saudi Producer Prices Rise 7.5% in May as Manufacturing Costs Climb .. 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