Saudi Gazette report
RIYADH — Saudi Arabia’s annual inflation rate rose to 2.1 percent in December 2025, compared to 1.9 percent during the same month in 2024. This is mainly attributed to the rise in housing, water, electricity, gas and other fuel prices by 4.1 percent, food and beverage prices by 1.3 percent, and transportation prices by 1.5 percent.

On a month-on-month basis, the Consumer Price Index or inflation rose by 0.1 percent from November 2025, according to the statistical report released by the General Authority for Statistics (GASTAT) on Thursday.The Wholesale Price Index also experienced an upward trend, rising by 3.1 percent year-on-year in December 2025. It recorded a monthly increase of 1 percent relative to November 2025.

The annual prices in the housing, water, electricity, gas, and other fuels category rose by 4.1 percent in December 2025, driven by a 5.3 percent increase in the actual rents paid by tenants for their primary residences. Similarly, food and beverage prices increased by 1.3 percent, influenced by a 1.7 percent rise in the prices of fresh, chilled, or frozen meat. Transportation prices also rose by 1.5 percent, fueled by a 6.6 percent increase in passenger transport services.

The personal care, social protection, and other goods and services category saw a 7 percent increase, driven by a 23.7 percent rise in the prices of other personal effects, which was influenced by a 25.8 percent increase in the prices of jewelry and watches.

Prices in the insurance and financial services sector rose by 4.1 percent, driven by a 6.6 percent increase in insurance prices. Prices in the recreation, sports, and culture sector increased by 2.4 percent, fueled by a 3.9 percent rise in holiday package prices.

Similarly, prices in the education services sector rose by 1.5 percent, influenced by a 1.6 percent increase in secondary education prices. Finally, prices in the restaurants and hotel services sector increased by 0.9 percent, driven by a 1.4 percent rise in food and beverage service prices.

On a monthly basis, the Consumer Price Index in December 2025 recorded a slight increase of 0.1 percent compared to November of the same year. Prices in the housing, water, electricity, gas, and other fuels sector rose by 0.2 percent, driven by a 0.3 percent increase in actual housing rents.

Prices also increased in the following sectors: Food and beverages (0.1 percent), personal care, social protection, and other goods and services (0.7 percent), restaurants and accommodation services (0.2 percent), furniture, household appliances and routine home maintenance, health, information and communications, and recreation, sports, and culture (0.1 percent).

Conversely, prices decreased in the following sectors: Clothing and footwear (0.2 percent), transportation (0.1percent), and insurance and financial services (0.3 percent). Prices remained stable in the education and tobacco sectors, showing no significant change in December 2025.

In a related context, the Kingdom's wholesale price index recorded a year-on-year increase of 3.1 percent in December 2025, compared to the same month in 2024. This increase is primarily attributed to price rises in the following sectors: Other transportable goods, excluding metal products, machinery, and equipment, (5.7 percent) and agriculture and fishing products (3.6 percent).

Prices of other transportable goods, excluding metal products, machinery, and equipment, rose by 5.7 percent in December 2025 compared to December 2024, driven by an 8.2 percent increase in refined petroleum product prices and a 7.8 percent increase in basic chemical prices.

Prices of agricultural and fishing products also increased by 3.6 percent, due to a 5 percent rise in agricultural product prices and a 1.2 percent increase in live animals and animal products.

Similarly, prices of metal products, machinery, and equipment rose by 1.1 percent, driven by a 5.4 percent increase in basic metal prices and a 3.4 percent increase in fabricated metal products.

Prices of food, beverages, tobacco, and textiles increased by 0.2 percent, due to a 0.7 percent rise in grain mill products, starch, and other food products, and a 1.2 percent increase in leather, leather products, and footwear. Meanwhile, prices of raw materials and minerals decreased by 0.1 percent, due to a 0.1 percent decrease in stone and sand prices.

On a monthly basis, the wholesale price index saw an increase of 1 percent in December 2025 compared to November 2025, as a result of a 1.8 percent increase in the prices of other transportable goods, excluding metal products, machinery and equipment, driven by a 13.8 percent increase in the prices of basic chemicals and a 1 percent increase in the prices of furniture and other transportable goods not elsewhere classified.