Saudi Arabia’s annual inflation rate slowed to 1.8% in January last year, the lowest level in 11 months, according to data from the General Authority for Statistics.
According to the data, Saudi Arabia’s consumer price index registered an annual increase of 1.8% in January 2026 compared to the previous year in January 2025.
Main reason
This was mainly due to a 4.2% increase in the prices of housing, water, electricity, gas and other fuels, a 1.5% increase in transportation prices, and a 1% increase in the prices of restaurants and accommodation services.
Prices in the housing, water, electricity, gas and other fuel sectors increased by 4.2% in January 2026, due to a 5.2% increase in prices in the real rental group of housing.
In the same situation, prices in the transport sector increased by 1.5% due to a 6% increase in prices for passenger transport services. The restaurant and lodging services sector also rose by 1%, due to a 1% increase in food and beverage service prices. The personal care, social protection and other goods and services sector recorded an increase of 7.9%, affected by a 28.1% increase in prices in the jewelery and watches category, and a 25.9% increase in prices in other personal items.
holiday offers
Prices in the insurance and financial services sector increased by 3.3%, driven by a 5.1% increase in insurance group prices. Prices in the Entertainment, Sports and Culture sector increased by 2.3%, led by a 3.7% increase in holiday package prices. Affected by the 1.6% increase in secondary education prices, the prices of the Education Service Bureau also increased by 1.6%. Prices in the food and beverage sector also rose by 0.2%, affected by a similar increase in prices in the grocery sector.
Prices in the furniture, appliances and regular home maintenance sector fell by 0.3%, driven by a 3% decline in furniture, fixtures and carpet prices. Health sector prices also fell by 0.1%, affected by a 0.4% decline in outpatient services prices.
Monthly
On a monthly basis, the consumer price index in January 2026 recorded an increase of 0.2% compared to December 2025, due to a 0.5% increase in the prices of the actual rental group of housing, as well as a 0.5% increase in the prices of water, electricity, gas and other fuels in the residential sector.
Prices rose by 0.2% in the transportation sector, 1% in the restaurant and accommodation services sector, 1.3% in the personal care, social security and other goods and services sector, 0.3% in the entertainment, sports and culture sector, 0.2% in the clothing and footwear sector, and 0.1% in the insurance and financial services sector.
On the other hand, the food and beverage sector fell by 0.6%, and the information and communications sector fell by 0.1%.
Prices in the education services, medical care, furniture, household appliances, regular home maintenance and tobacco services sectors remained stable and no significant changes were recorded during January 2026.
Saudi Arabia’s annual inflation rate slowed to 1.8% in January, the lowest level in 11 months, the General Authority for Statistics said.
According to the data, Saudi Arabia’s consumer price index registered an annualized increase of 1.8% in January 2026 compared to the same month of the previous year, January 2025.
Main reason
This was mainly due to a 4.2% increase in housing, water, electricity, gas and other fuel prices, a 1.5% increase in transportation prices, and a 1% increase in restaurant and accommodation services prices.
The prices of housing, water, electricity, gas and other fuels increased by 4.2% in January 2026, as the actual rent of housing increased by 5.2%.
In the same situation, transport prices increased by 1.5%, affected by a 6% increase in passenger transport service prices. Additionally, a 1% increase in food and beverage service prices led to a 1% increase in restaurant and accommodation service prices. The personal care, social protection and other goods and services sector recorded an increase of 7.9%, affected by a 28.1% increase in jewelery and watches prices and led by a 25.9% increase in other personal baggage prices.
holiday offers
Insurance and financial services prices rose 3.3%, led by a 5.1% increase in insurance groups. Entertainment, sports and culture prices rose 2.3%, driven by a 3.7% increase in holiday offers. Affected by a 1.6% increase in secondary education prices, educational service prices also increased by 1.6%. Food and beverage prices increased by 0.2%, affected by similar increases in the food group.
Prices in the furniture, appliances and routine home maintenance sector fell by 0.3%, affected by a 3% decline in furniture, fixtures and carpet prices. Medical prices also fell by 0.1%, affected by a 0.4% decline in outpatient service prices.
monthly basis
On a monthly basis, the consumer price index in January 2026 recorded an increase of 0.2% compared to December 2025, and housing, water, electricity, gas and other fuel prices increased by 0.5%. This was driven by a 0.5% increase in actual rents for residential properties.
Prices in the transport sector rose by 0.2%, restaurants and accommodation services rose by 1%, personal care, social security and other goods and services rose by 1.3%, entertainment, sports and culture rose by 0.3%, clothing and footwear rose by 0.2%, and insurance and financial services rose by 0.1%.
On the other hand, the food and beverage sector fell by 0.6%, and the information and communications sector fell by 0.1%.
Prices in the education services, medical care, furniture and home appliances, regular home maintenance, and tobacco sectors remained stable and did not show any significant changes during January 2026.
