Saudi Arabia's inflation rises to 1.8% in May 2026 as housing costs climb

Saudi Arabia's annual inflation rate rose to 1.8% in May 2026, up from 1.7% in April, driven primarily by higher costs for housing, utilities, transport, and food according to data from the General Authority for Statistics. The increase in the cost-of-living index reflects a 3.7% year-on-year rise in housing, water, electricity, and gas prices, largely due to a 4.7% jump in rents, alongside steady increases in restaurant and hotel prices. This subdued but ticking-up inflation affects consumers across the kingdom, with the Al Jouf region experiencing the highest rate at 3.4% while Jazan posted the lowest at 0.8%, indicating regional variations in economic pressure. The trend matches market expectations and underscores the impact of rising living costs on everyday households as price stability remains a key economic challenge.