The Kingdom Projects Average Inflation to Drop to 1.9% in 2027..

The preliminary budget statement for 2027 revealed that the Kingdom expects the inflation rate to decline to 1.9% next year, down from an average of 2.1% in 2026.

An analysis conducted by *Maal* last July showed that the Saudi economy successfully absorbed the impact of current geopolitical tensions on domestic commodity prices. Consequently, the Kingdom maintained the third-lowest annual inflation rate among G20 nations—standing at 1.8% last June—supported by market stability and an abundant supply of goods. This resilience prevailed despite rising maritime shipping and insurance costs, as well as the rerouting of vessels from eastern ports on the Arabian Gulf to western ports on the Red Sea.

Compared to other G20 nations, Saudi Arabia recorded the third-lowest annual inflation rate, trailing only China (1%) and Japan (1.5%), and tying with France (1.8%) for the rate observed in June 2026.