Saudi Arabia’s annual inflation rate stood at 2.3% in June 2025, the same as reported in May 2025, with the Consumer Price Index (CPI) rising 0.2% from May, according to the General Authority for Statistics (GASTAT). The Wholesale Price Index (WPI) logged a 2.1% annual increase but edged down 0.1% from the previous month.
GASTAT attributes the steady CPI primarily to a 6.5% rise in the housing, water, electricity, gas and fuels category, led by a 7.6% increase in rental rates and a 7.1% surge in villa rentals. Food and beverage prices rose 1.5% year-on-year, mainly driven by a 2.4% climb in meat and poultry costs, while jewellery, watches, and antiques recorded price increases of 26.5%. These gains offset declines in furniture, clothing, and transportation, which saw decreases of 1.7%, 0.6%, and 0.7%, respectively.
At the wholesale level, the strongest annual price increases were observed in transportable goods (excluding metals, machinery, and equipment), as well as agriculture and fisheries, which rose by 4.5% and 4.4%, respectively. Metal product and machinery prices fell 0.3%, contributing to the slight monthly contraction in the WPI.
Continued growth in real estate demand and construction linked to mega-projects like NEOM could sustain rental inflation. WPI softness may moderate future CPI increases. Monetary policy is likely to remain unchanged given the inflation outlook and stable exchange rate regime.
