RIYADH: Saudi Arabia’s annual inflation rate stood at 2.3 percent in June, up slightly from 2.2 percent in May, according to the latest data released by the General Authority for Statistics.

The increase in prices was primarily driven by a rise in housing rents, which continued to exert upward pressure on the cost of living, even as other consumer categories experienced mixed price movements.

Housing and utility costs remained the biggest contributor to inflation, rising by 6.5 percent year on year. This surge was largely due to a 7.6 percent increase in actual housing rents, with villa rental prices alone climbing 7.1 percent compared to June last year.

Given that the housing component carries a significant weight of 25.5 percent in the consumer price index basket, its persistent escalation has had an outsized impact on overall inflation.

Compared to its Gulf Cooperation Council neighbors, the Kingdom’s inflation sits near the regional average. In the UAE, annual inflation hovered around 2.3 percent in recent months, reflecting similar housing-related pressures.

The Saudi food and beverage segment experienced an annual increase of 1.5 percent, driven by a 2.4 percent rise in meat and poultry prices. The cost of personal goods and services rose by 4.1 percent, influenced in large part by a 26.5 percent spike in jewelry, watches, and antiques.

Restaurants and hotels also saw moderate inflation, rising 1.6 percent annually, while education prices increased by 1.4 percent, driven mainly by a 5 percent hike in tertiary education fees.

At the same time, downward pressure came from a handful of categories. Prices for furnishings and household equipment fell by 1.7 percent due to a decline in furniture and carpeting. Clothing and footwear prices dipped 0.6 percent, primarily due to a reduction in garment costs, while transportation prices declined 0.7 percent year on year, reflecting a 1.7 percent drop in vehicle prices.

On a monthly basis, the CPI remained broadly stable in June, registering a modest 0.2 percent increase from May according to the report. This was once again led by a 0.2 percent rise in the housing category, alongside slight increases in food, personal goods, and recreation services.

Prices of health services and communication saw minor declines, while tobacco and transportation remained flat compared to the previous month.

Saudi Arabia’s inflation rate remains moderate by global and regional standards. A combination of government subsidies, regulated utility prices, and the riyal’s fixed exchange rate to the US dollar are key stabilizing forces.

Additionally, the country’s subsidy framework, particularly in energy and essential food items, continues to shield consumers from global price shocks.
 
While the Kingdom’s inflation rate is in line with that seen in Kuwait — which reported a figure of approximately 2.2 percent as of May — other countries have seen a marked difference.

Qatar’s inflation remained significantly lower at just 0.5 percent year-on-year in April, and Bahrain experienced deflation, with consumer prices falling by about 1 percent annually in May.

Oman also recorded one of the lowest rates in the bloc, holding under 1 percent for much of 2025. The shared currency pegs and regional subsidy models have collectively contributed to a subdued inflationary landscape across the Gulf.

Oranges and lemons up

Saudi Arabia’s Wholesale Price Index saw an annual rise of 2.1 percent in June, driven mainly by 4.5 percent increase in transportable goods except metal products, machinery and equipment.

The price of agriculture and fishery product also increased by 4.4 percent annually according to the General Authority of Statistics.

Prices for metal products, machinery, and equipment declined by 0.3 percent due to a fall in electronics and industrial machinery costs. On a monthly basis, however, wholesale prices edged down 0.1 percent compared to May, suggesting some easing of cost pressures at the producer level.

GASTAT’s accompanying report on the Average Prices of Goods and Services offered a closer look at individual items affecting consumers directly.

The price of medium African lemons surged by 12.6 percent in June compared to the previous month, marking one of the sharpest increases among fresh produce. Abu Sorra Egyptian oranges and Pakistani mandarins also saw notable jumps.

Conversely, local onions became significantly cheaper, falling 16.7 percent month-on-month, while okra and imported onions dropped by 13.4 percent and 10.3 percent, respectively.

These fluctuations underscore the seasonal and supply-driven nature of food price changes in the Kingdom.

With inflation remaining broadly contained and economic diversification efforts continuing under Vision 2030, Saudi Arabia is maintaining a stable macroeconomic environment.

While rents and discretionary spending categories such as jewelry and education continue to rise, broader price stability across essential goods and services reflects the resilience of the Kingdom’s economic framework amid global uncertainty.

RIYADH: Saudi Arabia’s Tadawul All Share Index closed lower on Monday, falling 39.31 points, or 0.35 percent, to end the day at 11,213.59.

The total trading turnover on the benchmark index reached SR4.54 billion ($1.21 billion), with 60 stocks advancing and 190 declining.  

The MSCI Tadawul 30 Index also retreated, shedding 5.46 points, or 0.38 percent, to close at 1,436.97. 

The Kingdom’s parallel market Nomu declined by 80.73 points, or 0.29 percent, closing at 27,356.89. Of the listed stocks, 22 advanced while 56 retreated.  

The best-performing stock was Alistithmar AREIC Diversified REIT Fund, with its share price rising by 9.91 percent to SR9.43. 

Other top performers included Saudi Industrial Investment Group, which saw its share price rise by 4.56 percent to SR17.42, and Al Hassan Ghazi Ibrahim Shaker Co., which saw a 4.48 percent increase to SR29.40. 

On the downside, Emaar The Economic City posted the steepest drop of the day, falling 4.12 percent to SR13.73.  

Naseej International Trading Co. fell 4.03 percent to SR102.50, and MBC Group Co. dropped 3.79 percent to SR34.02. 

On the announcements front, Jarir Marketing Co. reported estimated net profits of SR197.2 million for the first half of 2025, marking a 15.2 percent increase from the same period last year. 

In a statement on Tadawul, the company attributed the estimated increase to a 4.5 percent rise in gross profit, driven by higher sales of after-sales services along with improved profit margins and an increase in other income. 

Jarir’s shares gained 1.27 percent, closing at SR12.79.

Advanced Petrochemical Co. also announced its estimated financial results for the same period. The firm’s net profits were estimated to reach SR82 million, up by 95.2 percent from the same period last year. 

The company said that the increase was driven by an 8 percent rise in net revenues, lower propane and purchased propylene prices. 

Advanced Petrochemical Co. also announced the completion of construction and successful operational launch of its Propane Dehydrogenation plant, capable of producing 843,000 tonnes of propylene annually, along with two PolyPropylene plants operated by Advanced Polyolefins Industry Co. with a combined capacity of 800,000 tonnes per year. 

The facilities, located in Jubail Industrial City, mark a significant milestone in the company’s expansion in the petrochemical sector, according to a statement. 

APOC, a joint venture between Advanced Global Investment Co. and SK Gas Petrochemical Pte., will begin contributing to Advanced Petrochemical Co.’s consolidated financial results starting in the third quarter of 2025. 

Advanced Petrochemical shares closed 0.32 percent higher at SR31.48.