The annual inflation rate in Saudi Arabia edged up to 1.8% in May 2026 from 1.7% in the previous month, matching market expectations. Costs increased in food and beverages (0.7% vs 0.6% in April), transportation (1.5% vs 1%), recreation and culture (2.6% vs 1.8%), and restaurants and hotels (1.7% vs 1%). In addition, deflation slowed in clothing and footwear (-0.1% vs -0.3%), while price growth remained steady in tobacco (at 0.4%) and education (at 1.4%). On the other hand, costs moderated in housing 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 by 0.2% in May, unchanged from the preceding period and matching market expectations.

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