Inflation hits 1.8% in January as housing and transportation prices rise

Saudi Arabia's annual inflation slows despite registering 1.8% in January, driven by higher rents, personal care, transportation, and insurance.
General Authority for Statistics

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Data from The General Authority for Statistics in Saudi Arabia showed that the Consumer Price Index during January 2026 increased by 1.8% on an annual basis, recording the latest inflation index, but representing the slowest pace of increase in 11 months, after inflation reached 1.7% in February 2025.

Data from the General Authority for Statistics showed that the Consumer Price Index (CPI) increased by 1.8% on an annual basis, recording the latest inflation index, but representing the slowest pace of increase in 11 months, after inflation reached 1.7% in February 2025.

The monthly report said the rise was mainly driven by the rise in housing prices, water, electricity, gas and other fuels by 4.2%, transportation prices by 1.5%, and prices of restaurants and accommodation services by 1%. Housing prices recorded a further increase due to a rise in effective rents by 5.2%. <In the transportation sector, prices for passenger transportation services increased by 6%, while restaurants and hotels saw a limited increase as a result of an 1% increase in food and beverage prices. Personal care and social protection and other goods and services saw the largest increase of 7.9%, influenced by a 25.9% increase in the price of other personal effects and a 28.1% increase in the price of jewelry and watches.

The report noted. <Insurance and financial services prices rose by 3.3% due to a 5.1% increase in insurance prices, while leisure, sports and culture prices rose by 2.3% driven by vacation offers, which rose by 3.7%. Education prices increased by 1.6%, while food and beverage prices rose marginally by 0.2%.