SAEDNEWS: Inflation in Saudi Arabia Hits Highest Level in Over Two Years in August, Though Rent Increases Ease Slightly
Inflation in Saudi Arabia surged to its highest level in over two years in August 2025, climbing 2.3% compared to the same period last year, even as rent increases continued to slow.
Official data shows that the Consumer Price Index (CPI) in Saudi Arabia rose 2.3% year-on-year in August, driven largely by a 5.8% jump in housing, water, electricity, gas, and other fuel costs. Food and beverage prices rose 1.1%, while restaurant and accommodation services saw a 3% increase.
Despite the overall rise in inflation, the housing rental sector continued to show signs of relief. For the tenth consecutive month, rent inflation slowed, reaching 7.6% in August—the lowest level in 15 months—down from 8.2% in July. On a monthly basis, the CPI edged up 0.1%.
These figures indicate that while pressure on housing costs is easing slightly, living expenses in key sectors such as energy and basic necessities remain on the rise. This sustained increase could heighten the economic burden on Saudi households and put further strain on the country’s economic outlook.
