Saudi Arabia Inflation Rate Eases to 2.2% in September

Saudi Arabia’s annual inflation rate eased slightly to 2.2% in September 2025, down from 2.3% in August. Inflation moderated for housing, water, electricity, gas, and other fuels (5.2% vs 5.8%), mainly due to softer rent growth (6.7% vs 7.6%), as well as for restaurant and accommodation services (1.5% vs 3.0%) amid a slower rise in accommodation costs (1.9% vs 4.7%). In contrast, inflation accelerated in the transport category (1.6% vs 1.1%) on the back of stronger growth in passenger transport services (6.9% vs 5.3%). Education services also picked up (1.2% vs 0.8%), while prices for personal care, social protection, and other goods and services rose at a faster pace (5.4% vs 4.8%). Meanwhile, prices declined more sharply for furnishings and household equipment (-0.6% vs -0.3%) while information and communication prices fell by 0.4% (vs -0.4%). Monthly, CPI edged down by 0.1% in September, reversing a 0.1% increase in August, marking the first monthly decline since March 2024.