Saudi Arabia’s annual inflation rate remained at 2.2% in May 2025, unchanged from April, according to data released on Sunday by the General Authority for Statistics (GASTAT). Month-on-month, consumer prices edged down 0.1%.
Housing costs continued to be the main driver of annual inflation, with the housing, water, electricity, gas, and fuel index rising 6.8% compared to May 2024. Residential rents increased 8.1%, with villa rents climbing 7.1%. Housing makes up 25.5% of the overall Consumer Price Index (CPI) basket.
Food and beverage prices rose 1.6% year-on-year, with meat and poultry costs up 2.8%. The education index climbed 1.3%, largely due to a 5.6% rise in post-secondary tuition. Prices in the restaurants and hotels category rose 1.8%, while the miscellaneous personal goods and services index increased 4%, driven by a 24.4% jump in prices for jewellery, watches, and antiques.
In contrast, prices fell in several categories. Home furnishings declined 2.5% year-over-year, led by a 4% drop in furniture and floor coverings. Clothing and footwear prices decreased by 0.9%, with footwear prices falling by 2.7%. Transport costs decreased by 0.8%, reflecting a 1.9% decline in vehicle purchase prices.
Month-on-month, transport costs decreased by 0.2%, entertainment and culture declined by 0.1%, and furniture and home equipment fell by 0.7%. Prices remained flat in the education, health, and hospitality categories. Food rose 0.1%, while housing increased 0.3% due to higher rents.
Separately, the wholesale price index rose 2% year-on-year in May, driven by a 4.4% increase in agricultural and fishery products and a 4.3% rise in transportable goods, excluding metals and machinery. Refined petroleum product prices rose 8.2%, and prices for furniture and other transportable goods increased by 9%.
Agricultural prices increased by 2.6% year-over-year, and fish prices jumped by 6.1%. Meanwhile, prices for raw materials and metals fell by 1.5%, led by lower prices for stone and sand. Machinery and equipment also declined 0.3%, with radio and communications devices down 5.1%.
On a monthly basis, wholesale prices were flat, with minor gains in chemicals and non-metallic products offsetting declines in metals and machinery.
