GASTAT: Inflation falls to 2.2% in May
Saudi Gazette report
RIYADH — The annual inflation rate in Saudi Arabia remained relatively stable at 2.2 percent in May 2025 compared to the same month last year. Consumer Price Index or inflation recorded a decrease of 0.1 percent in May compared to the previous month of April when it stood at 2.3 percent, according to the monthly statistics bulletin published on Sunday by the General Authority for Statistics (GASTAT). Saudi Arabia continues to record one of the lowest inflation rates among G20 countries.
This slight fall in inflation is attributed mainly to 0.2 percent decrease in the transportation index, a 0.1 percent decrease in the entertainment and culture index, a 0.7 percent decrease in the home furnishings and equipment index, a 0.4 percent decrease in the clothing and footwear index, and a 0.1 percent decrease in the communications index. The prices of restaurants and hotels, education, and health indexes remained relatively unchanged in May 2025.
The GASTAT report showed that there has been a 0.3 percent increase in the housing, water, electricity, gas, and fuel index, driven by a 0.4 percent increase in actual housing rental prices. The index also saw a 0.1 percent increase in the food and beverages index, a 0.5 percent increase in the miscellaneous goods and personal services index, and a 0.2 percent increase in the tobacco index.
On an annual basis, the housing, water, electricity, gas, and fuel index rose by 6.8 percent, driven by an 8.1 percent increase in housing rents in May 2025, impacted by a 7.1 percent increase in villa rental prices. This increase had a significant impact on the continued pace of annual inflation in May 2025, given its weight of 25.5 percent.
The report showed that the prices of food and beverages rose by 1.6 percent, driven by a 2.8 percent increase in meat and poultry prices. The education index recorded a 1.3 percent increase, impacted by a 5.6 percent increase in post-secondary education fees.
The miscellaneous personal goods and services index also rose by 4 percent, impacted by a 24.4 percent increase in the prices of jewelry, watches, and valuable antiques. The restaurants and hotels index recorded a 1.8 percent increase, driven by a 1.6 percent increase in catering services prices.
On the other hand, prices in the home furnishings and equipment section decreased by 2.5 percent, affected by a 4 percent decrease in furniture, carpets, and floor coverings. Prices in the clothing and footwear section decreased by 0.9 percent, due to a 2.7 percent decrease in footwear prices. The transportation section also recorded a 0.8 percent decrease, affected by a 1.9 percent decrease in vehicle purchase prices.
In a related context, the GASTAT announced a 2 percent year-on-year increase in the Kingdom's wholesale price index during May 2025, compared to the same month in 2024. This increase was primarily attributed to a 4.4 percent increase in agricultural and fishing products, as well as a 4.3 percent increase in other transportable goods.
The authority stated that agricultural and fishing product prices rose by 4.4 percent in May 2025, compared to May 2024, driven by a 2.6 percent increase in agricultural product prices and a 6.1 percent increase in fish and other fishery products.
The price index for other transportable goods—excluding metal products, machinery, and equipment—also saw a 4.3 percent increase, driven by an 8.2 percent increase in refined petroleum products prices and a 9 percent increase in furniture and other transportable goods not elsewhere classified.
Prices of food, beverages, tobacco, and textiles also rose by 0.3 percent, driven by a 1.6 percent rise in prices of grain mills, starch, and other food products, as well as a 1.6 percent rise in prices of leather, leather products, and footwear.
On the other hand, prices of raw materials and metals decreased by 1.5 percent, due to a 1.5 percent decline in stone and sand prices. Prices of metal products, machinery, and equipment also decreased by 0.3 percent, driven by a 5.1 percent decline in prices of radio, television, and communications equipment and devices, and a 3.3 percent decline in prices of general-purpose machinery.
On a monthly basis, the wholesale price index remained stable in May 2025 compared to April 2025, driven by a 0.1 percent rise in prices of other transportable goods—excluding metal products, machinery, and equipment—due to a 0.9 percent rise in prices of basic chemicals and a 0.3 percent rise in prices of glass and non-metallic products.
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