Saudi Arabia: Inflation rises in December from November
Latest reading: Consumer prices were up 2.1% on a year-on-year basis in December, following a 1.9% rise in the prior month and closing 2025 with an average 2.0% of inflation.
Relative to the previous month’s figures, there were higher price pressures for clothing and footwear (+0.4% on a year-on-year basis vs +0.3% in November) and recreation and entertainment (+2.4% vs +1.3% in November). In contrast, price pressures reduced for housing and utilities in December (+4.1% vs +4.3% in November). However, housing and utilities continued being the primary contributor to inflation, driven primarly by a 5.3% rise in rental prices. Finally, the variations in food and non-alcoholic beverages and transport were the same as in the prior month (+1.3% and +1.5%, respectively).
Finally, consumer prices were up 0.10% in December in month-on-month terms, following a 0.07% rise in the prior month.
Outlook: Our panelists see consumer prices increasing at a sligthly more moderate rate in 2026 relative to 2025. Inflation is expected to remain broadly stable around the 2% mark over coming years.