FX.co ★ Saudi Arabia Inflation Rate Eases to 16-Month Low

The annual inflation rate in Saudi Arabia eased to 1.8% in January 2026, down from 2.1% in December and below market expectations of 2.0%, registering its lowest level since September 2024. Price growth moderated in several categories, including insurance and financial services (3.3% vs 4.1% in December), recreation and culture (2.3% vs 2.4%), food and beverages (0.2% vs 1.3%), and tobacco (0.7% vs 1.0%).

Additionally, prices declined for furnishings and household equipment (-0.3% vs 0.1%) and health (-0.1% vs 0.2%). By contrast, inflation was unchanged for transport (holding at 1.5%) and edged higher for housing and utilities (4.2% vs 4.1%), restaurants and accommodation (1.0% vs 0.9%), clothing (0.5% vs 0.4%), communication (0.3% vs 0.2%), and education (1.6% vs 1.5%). Meanwhile, prices for personal care, social protection, and miscellaneous goods and services accelerated (7.9% vs 7.0%).

On a monthly basis, consumer prices rose 0.2% in January, following 0.1% increases in both November and December, reaching their highest monthly gain in three months.