Saudi Gazette report

RIYADH — Saudi Arabia's annual inflation rate rose to 2.3 percent in August 2025 compared to 1.6 percent during the same month last year. According to the monthly report of the General Authority for Statistics (GASTAT) released on Monday, the Consumer Price Index (CPI) or inflation recorded an increase of 0.2 percent month-on-month basis compared to July 2025.

This increase was primarily due to a 5.8 percent increase in housing, water, electricity, gas, and other fuel prices, with the largest increase being in residential rents that stood at 7.6 percent. Other categories also saw notable increases, including food and beverage prices 1.1 percent and restaurant and accommodation prices 3 percent. Jewelry and watches prices also rose by 18 percent in the personal care, social protection, and other goods and services category, which recorded an overall increase of 4.8 percent.

The revised methodology by GASTAT provides more comprehensive, modern, and accurate data on inflation rates, offering greater flexibility to capture shifts in spending patterns and measure the impact of price movements of goods and services in retail markets on household consumption.

The update is part of GASTAT’s ongoing efforts to improve statistical products and indicators, enhance their quality, and align them with international standards. The methodology is designed to provide policymakers with reliable data to shape economic and social policies that contribute to sustainable development planning and the achievement of Saudi Vision 2030 targets.