Saudi Arabia: CPI inflation picks up in December

Headline inflation edged up to 2.1% y/y in December, averaging 2.0% in 2025, mainly on modest food price gains across the year.
Housing inflation continued to ease, helped by the Riyadh rental freeze, supporting our softer 2026 average inflation forecast of 1.6%.
Accelerations in inflation were broad but mild across components, with a notable rebound in restaurants & hotels and an uptick in miscellaneous goods & services inflation.

Daniel Richards