FX.co ★ Saudi May Inflation Ticks Up to 1.8%

The annual inflation rate in Saudi Arabia inched up to 1.8% in May 2026 from 1.7% in April, in line with market expectations. Price increases were recorded in food and beverages (0.7% vs 0.6% in April), transportation (1.5% vs 1.0%), recreation and culture (2.6% vs 1.8%), and restaurants and hotels (1.7% vs 1.0%). In addition, deflation in clothing and footwear eased (-0.1% vs -0.3%), while price growth was unchanged in tobacco (0.4%) and education (1.4%).

By contrast, price gains slowed in housing and utilities (3.7% vs 3.8%), health (0.2% vs 0.4%), information and communication (0.6% vs 1.3%), insurance and financial services (2.2% vs 2.3%), and miscellaneous goods and services (5.6% vs 6.3%). On a monthly basis, consumer prices rose 0.2% in May, the same rate as in the previous month and in line with market forecasts.