Saudi Gazette report
RIYADH — Saudi Arabia’s annual inflation fee dropped to 2.1 % in July 2025 from 2.3 % in the identical month final yr. In line with the month-to-month report of the Common Authority for Statistics (GASTAT) launched on Thursday, the Shopper Value Index (CPI) or inflation dropped to a 5-month low since February this yr.
The CPI additionally confirmed stability on a month-to-month foundation, with costs throughout most classes remaining largely unchanged from June to July 2025. The Wholesale Value Index (WPI) remained steady at 2.1 % in July, whereas recording a slight month-to-month decline of 0.1 % in comparison with June.
In line with the info launched by the GASTAT, housing, water, electrical energy, fuel, and gasoline costs had been the primary driver of the rise, reaching 5.6 %, pushed by a 6.6 % rise in housing rents in July. Nonetheless, consultants famous that the continued decline in lease inflation from 7.6 % in June is a optimistic indicator of the success of the Kingdom’s efforts to reform the true property market and improve housing provide.
Meals and beverage costs additionally rose by 1.6 %, pushed by a 2.6 % improve in poultry meat costs, and a 4.3 % improve in miscellaneous private items and companies costs, with jewellery, watches, and antiques costs rising by 24.7 %.
Costs within the eating places and accommodations class rose by 1.4 %, pushed by a 1.5 % improve in restaurant and cafe costs. In the meantime, the training class rose by 1.1 %, impacted by a 3.8 % improve in greater training tuition charges.
In distinction, costs within the house furnishings and gear part declined by 2 %, impacted by a 3.9 % decline in furnishings, carpets, and flooring coverings. Costs within the clothes and footwear part additionally declined by 0.4 %, impacted by a 1.3 % decline in ready-made clothes. Transportation costs additionally decreased by 0.3 %, impacted by a 1.6 % decline in car buy costs.
These outcomes are according to the Worldwide Financial Fund’s forecast that inflation within the Kingdom will stay beneath management at round 2 % in 2025 and 2026.
It’s noteworthy that the CPI measures adjustments within the costs paid by shoppers for a set basket of 490 items and companies, whereas the WPI tracks adjustments in pre-retail costs for a set basket of 343 objects.