Saudi inflation steady at 1.8% for fourth month

The inflation rate in Saudi Arabia remained steady at 1.8% on an annual basis in July 2026, maintaining the same level for the past four months. The food and beverages sector decreased to 1.4%, while the housing and electricity category remained stable at its lowest rate in 46 months, at 3.9%. Meanwhile, transportation prices rose by 2%, the highest increase in 30 months. Future inflation expectations have also declined, staying near 2% over the next two years. The slowdown in housing rent increases continues as a result of government measures and directives led by the Crown Prince to achieve balance in the real estate sector, including a five-year freeze on rent hikes in Riyadh.

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