Saudi Arabia's Inflation Rate Declines to 1.9% in November 2025

Saudi Arabia's annual inflation rate decreased to 1.9% in November 2025, down from 2.2% in October, marking the lowest level since December 2024. This decline is attributed to a slowdown in price growth across essential categories, including food, housing, and transportation. The General Authority for Statistics (GASTAT) reported that inflation for food and beverages fell to 1.3%, housing and utilities to 4.3%, and transportation to 1.5%.

Saudi Arabia’s inflation plummets to 1.9 percent in November, lowest since December 2024

The inflation rate has been influenced by rising housing costs, with rental prices increasing by 5.4% and passenger transport prices by 6.4%. In response to escalating rents, the Saudi real estate authority implemented new regulations in September, suspending annual rental increases for residential and commercial properties within Riyadh for five years. Additionally, the government approved the Real Estate Ownership and Investment Law, which will facilitate property purchases by foreigners starting next year.

ReutersSaudi Arabia’s annual inflation rate slows to 1.9% in NovemberInflation in Saudi Arabia Slows to 1.9%Saudi Arabia’s inflation plummets to 1.9 percent in November, lowest since December 2024

On a month-to-month basis, the consumer price index (CPI) rose by 0.1% in November, following a 0.3% increase in October. Notably, costs for furnishings and household maintenance decreased by 0.3%, while restaurant and accommodation services saw a decline of 0.5%. Conversely, inflation for tobacco and education services experienced slight increases.

Saudi inflation hits 1.9 per cent in November as consumer prices remain stable

The decline in inflation aligns with Saudi Arabia's broader economic strategy under its Vision 2030 program, which aims to diversify the economy away from oil dependency. The kingdom is currently undertaking significant development projects around Riyadh to boost tourism and the private sector. In conjunction with these efforts, the government has approved a budget for 2026 that anticipates a reduced fiscal deficit, reflecting a shift in spending priorities towards industry and logistics services.

Inflation in Saudi Arabia Slows to 1.9%

Despite the positive indicators, some analysts express concerns regarding the long-term sustainability of these inflation trends, particularly in light of ongoing global economic uncertainties and fluctuating oil prices. Critics argue that while current measures may provide temporary relief, they do not address the underlying structural issues within the housing market.

Saudi inflation hits 1.9 per cent in November as consumer prices remain stable

The General Authority for Statistics emphasized that the recent inflation figures reflect stable price conditions across consumer and wholesale markets, indicating limited inflationary pressures as the year concludes. The authority's data suggests that the government's interventions in the housing market are beginning to yield results.

Saudi inflation hits 1.9 per cent in November as consumer prices remain stable

• “To counter the rise in rents, the General Authority for Real Estate in the Kingdom issued new regulations last September, which included suspending annual increases in rents for residential and commercial properties within the borders of Riyadh for five years.” — Government Official

Inflation in Saudi Arabia Slows to 1.9%

While most sources agree on the inflation rate of 1.9% for November, discrepancies exist regarding the specific impacts of various sectors on inflation. Some reports highlight differing levels of price increases in categories such as education and personal care, indicating a need for further analysis to understand the full scope of inflation dynamics in Saudi Arabia.

Saudi Arabia’s inflation plummets to 1.9 percent in November, lowest since December 2024