RIYADH — Saudi Arabia’s annual inflation rate reached 1.8 percent in July 2026, driven mainly by a 4.2 percent increase in housing, water, electricity, gas and other fuel prices, according to the General Authority for Statistics (GASTAT). The housing, water, electricity, gas and other fuels's annual increases were driven by a 4.3 percent rise in actual housing rents. The division was the largest contributor to annual inflation, accounting for 0.8 percentage points of the overall rate. Personal care, social protection and other goods and services prices rose 2.9 percent year-on-year, driven by an 11.1 percent increase in other personal effects, which was affected by a 12 percent rise in jewelry and watch prices. Entertainment, sports and culture prices increased 2.4 percent annually, driven by a 3.7 percent rise in holiday offers. Food and beverage prices rose 1.5 percent, while transport prices increased 1.4 percent. **media[2750130]** Meanwhile, furnishings, household equipment and routine home maintenance prices declined 0.5 percent year-on-year, while clothing and footwear prices fell 0.4 percent. On a monthly basis, the CPI increased 0.2 percent in July compared with June 2026. Housing, water, electricity, gas and other fuels prices rose 0.9 percent, driven by a 7.1 percent increase in the electricity, gas and other fuels group. Restaurants and accommodation services prices increased 0.5 percent month-on-month, entertainment, sports and culture rose 0.4 percent, and transport increased 0.2 percent. In contrast, personal care, social protection and other goods and services prices declined 1 percent from the previous month, while furnishings, household equipment and routine home maintenance prices fell 0.1 percent.