The annual inflation rate in Saudi Arabia increased by 2.2% during May 2025, compared to the same month in 2024, according to data released by the General Authority for Statistics. This rise is primarily due to the significant increase in the prices of housing and related services, making this sector the main driver of the index.

<According to the authority, housing, water, electricity and gas prices increased by 6.8% year-on-year, as a result of an increase in the Residential Rents group by 8.1%, driven in turn by a 7.1% rise in residential villa rentals. The authority noted that the housing section constitutes about 25.5% of the consumer basket, giving it the largest impact on the overall inflation movement.

<Regarding the rest of the sections, the data showed that the food and beverages section increased by 1.6%, affected by an increase in meat and poultry prices by 2.8%. Miscellaneous goods and services saw growth of 4%, while transportation prices declined by 0.8% year-on-year, moderating the overall rise. <At the monthly level, the Consumer Price Index (CPI) recorded a slight change of only 0.1% in May compared to April, indicating relative stability in prices. The Authority explained that this stability was due to the balance of the impact of the rise in housing prices by 0.4% against the decrease in transportation prices by 0.2%, which contributed to limiting any further increases in the overall index.

May's CPI recorded only a slight change of 0.1% compared to April, indicating relative stability. <The Consumer Price Index (CPI) is one of the most important tools that the Kingdom relies on to monitor price movements and assess inflation levels, and is used as a key source in formulating and guiding economic and financial policies, especially in light of the changes witnessed by markets locally and globally.