FX.co ★ Saudi Arabia Inflation Rate Rises to 2.3%

In August 2025, Saudi Arabia experienced a rise in its annual inflation rate, ascending to 2.3% from the previous month's 2.1%, slightly surpassing the anticipated 2.2%. The primary contributors to this increase were sectors such as housing, water, electricity, gas, and other fuels, which saw a growth rate of 5.8%, up from 5.6% in July, largely due to a more rapid escalation in rent prices (7.6% compared to 7.2%). Additionally, there was a notable uptick in food and beverage prices, which rose 1.1% from 1.0%, and the restaurant and accommodation services sector, which climbed to 3.0% from 2.8%, driven by increased accommodation costs (4.7% up from 4.4%). The category encompassing personal care, social protection, and other goods and services also registered an increase, moving to 4.8% from 4.5%, spurred by rising prices for jewelry and watches, which surged 18% from 17%. Transport costs saw an accelerated inflation rate of 1.2%, rising from 1.1%, attributed to higher passenger transport expenses (5.3% from 5.0%), while education services made a modest rise to 0.8% from 0.5%. Conversely, inflation for furnishings and household equipment saw a slight decline to -0.3% from -0.2%, and the information and communication sector also eased to -0.4% from -0.3%. Month-on-month, consumer prices saw a modest increase of 0.1% in August, mirroring the pace observed in July.