Saudi Annual Inflation Holds Steady at 2.3% in June

Saudi Arabia’s annual inflation rate remained relatively stable at 2.3% in June 2025, compared to the same period last year.

The stability was primarily driven by a 6.5% increase in housing, water, electricity, gas, and fuel prices. Food and beverage prices rose 1.5%, while personal goods and services saw a 4.1% increase.

Rental Prices Main Driver of June Inflation

The housing, water, electricity, gas, and other fuels section rose by 6.5%. This was mainly due to a 7.6% increase in actual rents paid for housing in June 2025, attributed to a 7.1% rise in rental prices for villas. This increase significantly impacted the overall annual inflation rate in June 2025, given the section’s 25.5% weight in the index.

Food and beverage prices climbed 1.5%, driven by a 2.4% rise in meat and poultry prices. Similarly, personal goods and services prices increased by 4.1%, a result of a 26.5% jump in the prices of jewelry, watches, and precious antiques. The restaurants and hotels section also edged up 1.6%, propelled by a 1.9% rise in prices for restaurants, cafes, and similar establishments.

Meanwhile, the education section increased by 1.4%, primarily due to a 5.0% rise in tertiary education fees.

On the other hand, furnishing and home equipment prices decreased by 1.7%, influenced by a 3.6% decline in prices of furniture, carpets, and flooring. Clothing and footwear prices also fell by 0.6%, due to a 1.4% drop in garment prices. Transportation prices decreased by 0.7%, affected by a 1.7% fall in vehicle purchase prices.

Prices Stable Month-on-Month in June

On a monthly basis, the Consumer Price Index (CPI) remained largely stable in June 2025, recording a 0.2% increase compared to May 2025.

This marginal rise was mainly due to a 0.2% increase in the housing, water, electricity, gas, and other fuels section, driven by a 0.3% rise in actual housing rent prices.

The index also recorded a 0.1% increase in food and beverage prices. Similarly, personal goods and services prices rose by 0.5%, while recreation and culture prices increased by 0.3%, furnishing and home equipment by 0.2%, clothing and footwear by 0.1%, restaurants and hotels by 0.1%, and education by 0.1%.

However, the index recorded a decrease in health prices by 0.3% and communication by 0.1%.

Prices for transportation and tobacco products showed no significant change in June 2025.