Saudi Arabia’s Inflation Rises to 2.1% in December 2025 Due to Higher Rents
Saudi Arabia’s annual inflation rate increased to 2.1% in December 2025, mainly because of higher housing rents, according to official data released on Friday.
The rise in inflation was measured by the Consumer Price Index (CPI) and reported by the General Authority for Statistics (GASTAT). The main reason for the increase was higher costs in housing and related services.
Prices in the housing, water, electricity, gas, and other fuels category went up by 4.1% year-on-year in December. Housing rents played the biggest role in this rise. Rents paid by tenants for their main homes increased by 5.3%, which pushed overall housing costs higher.
Food and beverage prices also rose in December. They increased by 1.3% compared to last year. This was mainly due to a 1.7% rise in prices of fresh, chilled, and frozen meat. As food prices increased, restaurant and hotel prices also went up. This category rose by 0.9% year-on-year.
Transport costs saw an increase as well. Transport prices rose by 1.5% in December, driven by a sharp 6.6% increase in passenger transport prices, including travel services.
Prices for personal care products, social protection services, and other goods and services increased strongly, rising by 7% year-on-year. This jump was mainly caused by higher prices for personal items. Prices of items such as jewelry and watches rose by 23.7%, while jewelry and watch prices alone increased by 25.8% in December.
The entertainment, sports, and culture category recorded a 2.4% increase, supported by higher demand linked to holiday promotions. In addition, education services prices rose slightly. The increase was led by a 1.6% rise in secondary education fees.
Monthly Inflation Changes
On a monthly basis, inflation remained low. The CPI rose by only 0.1% in December compared to November, according to GASTAT.
Housing-related prices increased by 0.2% month-on-month, mainly due to rising rents. Prices for food and beverages, personal care products, restaurants, and accommodation services all increased by less than 1% compared to the previous month.
Education and tobacco prices showed no major change in December.
Some categories recorded very small increases. Prices for furniture, home appliances, home maintenance, healthcare, communication, and entertainment rose by 0.1%. Meanwhile, clothing and footwear prices fell by 0.2%.
Transport prices dropped by 0.3% month-on-month, as did prices for insurance and financial services.
Overall, the data shows that rising rents remain the main driver of inflation in Saudi Arabia, while monthly price growth stayed modest in December 2025.
Published: 19th January 2026
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