RIYADH – Saudi Arabia’s inflation rate remained steady in November 2025, registering a 1.9 percent increase year-over-year, according to the latest data released by the General Authority for Statistics (GASTAT). The Consumer Price Index (CPI) showed a slight monthly rise of 0.1 percent compared to October 2025. This stability in inflation comes as the Kingdom continues its economic diversification efforts under Vision 2030.
The report, published today, indicates that the overall price level for goods and services purchased by Saudi households has seen minimal change in recent months. While some sectors experienced price increases, these were offset by declines in others, resulting in the sustained 1.9 percent annual inflation figure. This data is crucial for the Saudi Central Bank (SAMA) as it assesses monetary policy.
Understanding Saudi Arabia’s Inflation Trends
The primary driver of the year-over-year inflation rate was a significant increase in housing costs, which rose by 4.3 percent. Within this category, actual residential rents were particularly influential, climbing 5.4 percent compared to November 2024. This increase reflects ongoing demand for housing in key urban centers and potential supply constraints.
Additionally, transportation costs contributed to the overall increase, rising by 1.5 percent over the past year. Food and beverage prices also saw a modest increase of 1.3 percent. These three categories – housing, transportation, and food – consistently represent a substantial portion of household spending, making their price movements key indicators of the broader economic climate.
Sectoral Price Variations
While overall inflation remained contained, the report highlighted notable variations across different sectors. Prices for personal care, social protection, and other goods and services increased substantially, by 6.6 percent. This was largely fueled by a 19.9 percent surge in the cost of other personal effects.
Luxury goods also experienced price increases, with jewelry and watches becoming 21.6 percent more expensive year-on-year. Insurance and financial services saw a 5.1 percent rise, while recreation, sports, and culture increased by 1.3 percent, driven by higher holiday package prices.
However, some sectors experienced price decreases. Furniture, household appliances, and routine home maintenance costs fell by 3.3 percent. Restaurants and accommodation services also saw a decline of 0.5 percent, primarily due to a 2.3 percent drop in accommodation prices. This suggests potential shifts in consumer spending patterns or promotional activity within these industries.
The data also revealed a contrasting trend in wholesale prices. The Wholesale Price Index (WPI) increased by 2.3 percent annually in November 2025, but decreased by 0.3 percent month-on-month. This divergence between consumer and wholesale price movements could indicate that businesses are absorbing some cost increases rather than passing them on to consumers.
Methodology and Scope of the Indices
GASTAT’s CPI is calculated based on price changes for a fixed basket of 582 items commonly purchased by Saudi households. This comprehensive basket aims to represent the typical spending habits of consumers across the Kingdom. The WPI, on the other hand, tracks price movements for 343 goods at the pre-retail level, providing insights into the cost pressures faced by businesses. Understanding these economic indicators is vital for investors.
The indices are regularly updated to reflect changes in consumption patterns and the introduction of new goods and services. This ensures that the CPI and WPI remain relevant and accurate measures of price changes in the Saudi economy. The methodology employed by GASTAT aligns with international standards, allowing for comparisons with price stability measures in other countries.
The relatively stable inflation rate in Saudi Arabia is a positive sign for the country’s economic outlook. It suggests that the government’s policies to manage price pressures are having some effect. However, the increases in housing costs remain a concern, particularly for lower-income households. Monitoring these trends will be crucial for ensuring sustainable economic growth.
Looking ahead, GASTAT is expected to release the December 2025 CPI and WPI data in mid-January 2026. Analysts will be closely watching for any signs of accelerating or decelerating inflation, as well as further details on the sectoral price variations. The impact of global commodity prices and domestic economic policies will continue to be key factors influencing Saudi Arabia’s inflation trajectory.
The Saudi Central Bank will likely consider this data when making its next interest rate decision, scheduled for early February 2026. Uncertainties surrounding global economic conditions and geopolitical events could introduce volatility into the Saudi inflation outlook, requiring a flexible and data-driven approach to monetary policy.
