In February 2025, Saudi Arabia's inflation rate remained steadily at 2% year-on-year, primarily fueled by a surge in housing costs, according to the General Authority for Statistics (GASTAT). This figure underscores the country's economic strategies, where rising housing rents—up by 8.5%—have been a significant contributor to the 7.1% hike in categories like housing, water, electricity, gas, and fuels. Such stability aligns with Saudi Arabia's broader economic vision, particularly the ambitious Vision 2030 initiative aimed at diversifying the economy and reducing dependency on oil revenues.

The Kingdom's efforts to maintain this inflation rate reflect both its internal policies and global economic dynamics. World Bank forecasts suggest that Saudi Arabia's inflation will slightly increase to 2.3% this year, which is still below the Gulf Cooperation Council's average, highlighting the country's relatively stable economic environment compared to other regional economies.

On a monthly comparison, consumer prices demonstrated relative stability, marked by a modest 0.2% increase from January 2025. Notably, the housing, water, electricity, gas, and other fuels category saw a 0.4% rise, driven by the same percentage in actual housing rent prices. Such minute fluctuations indicate the delicate balancing act between ensuring economic growth and maintaining consumer price stability.

Delving deeper into various consumer categories, the food and beverage sector experienced a 1% rise, prominently influenced by a 3.7% increase in meat and poultry prices. Similarly, personal goods and services costs climbed by 3.9%, with a notable 26.7% surge in jewelry prices. These components emphasize the nuanced challenges faced by the Kingdom in managing inflation across different segments of the economy.

The Wholesale Price Index (WPI) reflected these challenges with a 1.5% year-on-year increase, highlighting a complex mix of rising and falling prices in different sectors. For instance, other transportable goods saw a 3.4% price rise, alongside a 3.9% hike in agriculture and fishery products. Conversely, prices for food products, textiles, and metal products experienced marginal declines. Such mixed trends are a testament to the multifaceted nature of Saudi Arabia's economic landscape.

Furthermore, the data from Saudi Gazette corroborates these findings, painting a picture of Saudi Arabia as having one of the lowest inflation rates among G20 countries. While the housing, energy, and transportation sectors have seen varied price movements, Saudi Arabia's annual inflation rate consistently underscores a controlled economic environment, reinforcing its strategic positioning within the global economy.