RIYADH: As stable food prices helped counteract ongoing pressure from housing rentals, Saudi Arabia’s annual inflation rate dropped to 1.7% in February, the lowest level in a year. From 1.8 percent in January to 1.7 percent year over year, the consumer price index decreased and reached the same level as in February 2025.
The International Monetary Fund, which stated in October that Saudi Arabia is anticipated to maintain annual inflation of roughly 2 percent in 2026, generally agrees with the Kingdom’s inflation trajectory.
“This increase was primarily driven by a rise in housing, water, electricity, gas, and other fuel prices by 4.1 percent, transportation prices by 1.4 percent, and prices of restaurant and accommodation services by 1.9 percent,” according to GASTAT’s most recent report.
The statistics also revealed a 4.1 percent increase in housing, water, electricity, gas, and other fuels in February 2026, primarily due to a 5.1 percent increase in actual home rents.
Restaurant and lodging services saw a 1.9 percent increase due to rising lodging expenses, while transportation prices also grew by 1.4 percent, bolstered by a 5.6 percent increase in passenger transport services.
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