Saudi Arabia Maintains Low G20 Inflation Rate Amid Rising Housing and Utility Costs in 2025
October 16, 2025
Meanwhile, the Wholesale Price Index (WPI) increased by 2.1% year-on-year in September 2025, indicating moderate upward pressure at the wholesale level for 343 goods.
Saudi Arabia’s inflation rate stood at 2.2% in September 2025, maintaining stability and reflecting a slowdown in inflation amid overall economic stability.
In September 2025, the Consumer Price Index (CPI), which tracks the cost of a fixed basket of 582 goods and services, increased by 2.2% year-on-year, reflecting moderate inflation driven mainly by higher housing, utilities, food, and hospitality prices.
The Cost of Living Index rose to 103.83 points in September 2025 from 101.62 points the previous year, with significant contributions from housing and utilities (+5.2%), food (+1.1%), and hospitality (+1.5%).
The country continues to maintain one of the lowest inflation rates among G20 nations, supported by effective economic policies and structural reforms aligned with Vision 2030.
The CPI methodology was recently updated to improve accuracy, incorporating new data sources such as the Household Income and Expenditure Survey 2023, administrative records, and national accounts, along with a new base year of 2023 and expanded geographical coverage.
On a monthly basis, the CPI decreased slightly by 0.1% from August 2025, suggesting stable prices across most consumer categories.
Inflation has remained relatively stable throughout 2025, with July at 2.1% and August at 2.3%, demonstrating controlled inflationary pressures.
In addition, wholesale prices increased by 0.3% month-on-month from August 2025, indicating moderate upward pressure in certain sectors of production and supply.
Housing and utilities remain the main contributors to inflation, with rising energy costs and real estate market dynamics significantly impacting household expenses, while food and service costs exert moderate upward pressure.
Summary based on 2 sources
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Sources

Arabian Business: Latest News on the Middle East, Real Estate, Finance, and More • Oct 15, 2025
Saudi Arabia inflation rate holds at 2.2% in September 2025
Economy Middle East • Oct 15, 2025
Saudi Arabia's inflation declines to 2.2 percent in September 2025 amid updated CPI methodology