Most Gulf Markets Gain on Iran Deal

Saudi Arabia's inflation rate saw a year-on-year increase of 1.8% in May 2026, according to data released by the General Authority for Statistics. The primary driver of this rise was the housing sector, which experienced a 3.7% increase in costs, largely influenced by a 4.7% jump in actual housing rents.

Beyond housing, several other categories contributed to the overall inflation. Transport costs rose by 1.5%, and restaurant and hotel prices increased by 1.7%. The personal care and miscellaneous goods and services category saw a notable 5.6% climb, significantly boosted by a 20.0% surge in the prices of jewelry and watches. However, a slight annual decline of 0.5% in furniture and household equipment prices helped to moderate the overall inflation figure.

On a monthly basis, the consumer price index increased by 0.2% from April to May. Transport prices were the main contributor to this monthly rise, climbing 0.6%, with passenger transport services up 1.9%. Food and beverage prices saw a marginal 0.1% increase, and housing and water costs also rose by 0.2%.

Conversely, prices for personal care, miscellaneous goods and services, furniture, and household equipment all saw slight monthly decreases. Clothing and footwear prices also dipped by 0.1% compared to the previous month. The housing sector remained the largest contributor to annual inflation, accounting for 0.7 percentage points, followed by personal care and miscellaneous goods and services at 0.3 percentage points.