Saudi Producer Prices Rise 0.4% in January Amid Higher Utility Costs
Saudi Arabia’s producer prices increased by 0.4 percent in January 2026 compared to the previous year, driven primarily by rising utility costs, according to data from the General Authority for Statistics (GASTAT). The Producer Price Index (PPI) reached 104.4, up from 104 a year earlier and 103.5 in December. This modest rise indicates that wholesale inflation remained contained at the start of the year. The increase was largely supported by an 11.5 percent surge in water supply, sewerage, and waste management prices, alongside a 1.8 percent rise in electricity, gas, steam, and air conditioning supply costs. Manufacturing prices, which constitute the majority of the index at 91.2 percent, saw a slight 0.1 percent annual increase, bolstered by higher prices for basic metals and food products. Conversely, prices for refined petroleum products and chemicals declined. On a monthly basis, manufacturing prices rose 1 percent, influenced by a 1.8 percent increase in refined petroleum products. This data serves as an early indicator of inflation trends, complementing recent reports showing the Kingdom’s annual consumer inflation rate easing to 1.7 percent in February.
Wire timeline
Saudi Producer Prices Rise 0.4% in January Amid Higher Utility Costs
Saudi Arabia’s producer prices increased by 0.4 percent in January 2026 compared to the previous year, driven primarily by rising utility costs, according to data from the General Authority for Statistics (GASTAT). The Producer Price Index (PPI) reached 104.4, up from 104 a year earlier and 103.5 in December. This modest rise indicates that wholesale inflation remained contained at the start of the year. The increase was largely supported by an 11.5 percent surge in water supply, sewerage, and waste management prices, alongside a 1.8 percent rise in electricity, gas, steam, and air conditioning supply costs. Manufacturing prices, which constitute the majority of the index at 91.2 percent, saw a slight 0.1 percent annual increase, bolstered by higher prices for basic metals and food products. Conversely, prices for refined petroleum products and chemicals declined. On a monthly basis, manufacturing prices rose 1 percent, influenced by a 1.8 percent increase in refined petroleum products. This data serves as an early indicator of inflation trends, complementing recent reports showing the Kingdom’s annual consumer inflation rate easing to 1.7 percent in February.
Business & Economy