Saudi PPI rises but inflation stays steady

The Producer Price Index in Saudi Arabia rose to 8.5% year-on-year in June 2026, primarily driven by a 9% increase in manufacturing sector prices. Despite the rise in producer costs, this did not translate into higher inflation rates, which remained steady at 1.8% in June and July, due to companies not passing on cost increases to consumers, a calm housing sector, and rental reductions. The increase in the producer price index reflects higher production costs and certain input prices, but it has not impacted the final consumer inflation thanks to market dynamics and competition.

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