Saudi Gazette report
RIYADH — Saudi Arabia’s annual inflation rate reached 2.2 percent in September 2025, compared to September 2024 when it stood at 1.7 percent, and this rise was driven by increases in housing, water, electricity, gas, and other fuels. The Consumer Price Index (CPI) or inflation saw a slight decrease of 0.1 percent from 2.3 percent during August 2025 on a monthly basis, according to the General Authority for Statistics (GASTAT).
The authority said that residential rents were the most prominent factor in the increase in inflation, rising by 6.7 percent, which was reflected in the housing, water, electricity, gas, and other fuels category, which in turn rose by 5.2 percent. Food and beverage prices also rose by 1.1 percent, affected by a 0.6 percent increase in fresh or chilled meat prices, while restaurant and accommodation prices rose by 1.5 percent due to an increase in accommodation service prices.
Transportation prices rose by 1.6 percent, driven by a 6.9 percent increase in passenger transport prices, while insurance and financial services prices rose by 7.7 percent, driven by a 12.7 percent increase in insurance prices. Meanwhile, furniture, household appliances, and periodic home maintenance prices declined by 0.6 percent, while communications prices fell by 0.4 percent impacted by a 6.4 percent decline in information and communications equipment prices.
On a monthly basis, CPI registered a slight decline of 0.1 percent compared to August 2025, driven by a 0.4 percent decline in transportation prices and a 1.4 percent decline in restaurant and accommodation prices. Housing, water, electricity, gas, and other fuel prices rose by 0.4 percent.
The Wholesale Price Index (WPI) recorded an increase of 2.1 percent on an annual basis in September 2025 compared to the same month in 2024. This increase was primarily attributed to a 4 percent increase in the prices of other transportable goods and a 4.7 percent increase in the prices of agricultural and fishing products.
On a monthly basis, the wholesale price index rose by 0.3 percent in September 2025 compared to the previous month of August. This increase was attributed to a 0.7 percent increase in the prices of other transportable goods, excluding metal products, machinery, and equipment, due to a 5.3 percent increase in the prices of basic chemicals, and a 1.5 percent increase in the prices of furniture and other transportable goods.
The CPI reflects changes in prices for a fixed basket of 582 goods and services, while the WPI measures price developments at the pre-retail stage for a fixed basket of 343 goods.