Producer prices jump 5.1% in August, led by manufacturing prices

RIYADH —The Producer Price Index (PPI) in Saudi Arabia recorded an increase of 5.1 percent in August 2026 compared with the same month in 2025, according to data released by the General Authority for Statistics (GASTAT).

The authority attributed the increase to a 5.3 percent rise in manufacturing prices, a 4.2 percent rise in prices for water supply, sewerage, and waste management activities, and a 2.2 percent increase in prices for electricity, gas, steam, and air conditioning supply.

At the industrial level, prices of refined petroleum products rose by 4.8 percent year-on-year, while those of chemicals and chemical products increased by 10.5 percent. Prices of food products also climbed by 5.4 percent, while basic metal prices rose by 8.6 percent and apparel prices surged by 13.4 percent.

Conversely, prices of fabricated metal products, excluding machinery and equipment, declined by 3.1 percent, while prices in other economic activities fell by 3.5 percent.

On a monthly basis, the Producer Price Index remained relatively stable in August 2026 compared with the previous month, as manufacturing prices edged down by 0.1 percent. The decline was driven by a 1.5 percent drop in prices of chemicals and chemical products, a 0.8 percent decrease in rubber and plastic product prices, and a 0.5 percent decline in prices across other economic activities.

Prices in beverage production also fell by 0.7 percent. In contrast, prices of refined petroleum products increased by 0.6 percent, while basic metal prices rose by 0.2 percent.

In other sectors, prices for electricity, gas, steam, and air conditioning supply increased by one percent month-on-month, while prices for water supply, sewerage, and waste management activities rose by 0.3 percent.

The PPI measures relative changes in the prices of domestically produced goods. It is calculated using data collected through the Producer Price Survey, which covers a sample of industrial establishments engaged in activities included in the index.