Saudi Arabia Inflation Slows to 1.9% in November as Housing Costs Rise

Saudi Arabia Inflation Slows to 1.9% in November as Housing Costs Rise

Saudi Arabia’s annual inflation rate fell to 1.9% in November, down from 2.2% in October, according to official government data released on Monday. This slowdown gives some relief to policymakers, even though housing costs continue to put pressure on prices.

Data from the General Authority for Statistics (GASTAT) showed mixed price changes across different spending categories. While housing and services continued to push inflation higher, some household-related costs declined.

The housing, water, electricity, gas, and fuel category rose 4.3% year-on-year, mainly because actual rental prices increased by 5.4%. Higher rents for primary homes were the main reason for this rise, showing that housing costs remain the biggest factor behind inflation in the kingdom.

Food and beverage prices increased by 1.3%, supported by a 1.6% rise in meat prices, including fresh, chilled, and frozen meat. The transport sector also saw prices rise by 1.5%, mainly due to a sharp 6.4% increase in passenger transport costs.

Prices in the personal care, social protection, and other goods and services category climbed 6.6%. This was driven by a 19.9% rise in other personal items, including a 21.6% increase in jewelry and watch prices. The insurance and financial services category rose 5.1%, supported by an 8.4% increase in insurance prices.

The entertainment, sports, and culture category recorded a 1.3% increase, mainly due to higher holiday package prices, which rose 2.1%.

On the other hand, some categories saw price declines. The furniture, household equipment, and home maintenance category fell 0.3%, after a 3.3% drop in furniture and carpet prices. Prices in the restaurants and accommodation sector also declined by 0.5%, driven by a 2.3% fall in accommodation service prices.

Overall, inflation in Saudi Arabia has mostly stayed between 2.1% and 2.3% throughout the year, with rising housing costs being the main driver. On a monthly basis, consumer prices increased slightly by 0.1% in November, showing limited short-term inflation pressure.

To control rising rents, the Real Estate General Authority introduced new rules in September. These include a five-year freeze on annual rent increases for residential and commercial properties within Riyadh’s city limits.

Earlier this year, Saudi Arabia also approved a new Real Estate Ownership and Investment Law, which will make it easier for foreigners to buy property when it takes effect next year. The move is expected to attract more investment into the real estate sector.

As part of its Vision 2030 strategy, the kingdom continues to develop major projects around Riyadh to boost tourism, support the private sector, and reduce dependence on oil revenues.

Saudi Arabia’s economy also showed strong growth. Real GDP rose by 4.8% year-on-year in the third quarter of 2025. Oil activities grew 8.3%, non-oil activities increased 4.3%, and government activities rose 1.4%. Compared to the previous quarter, the economy expanded by 1.4%, reflecting steady economic momentum.

Published: 16th December 2025

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