Saudi Producer Prices rise 7.5% in May on higher manufacturing costs

RIYADH — Saudi Arabia's Producer Price Index (PPI) increased by 7.5 percent in May 2026 to last year, driven mostly by higher manufacturing prices, according to the General Authority for Statistics (GASTAT).

Other services that drove the increase include electricity, gas, steam and air conditioning supply, water supply, sewerage, waste management, and remediation activities.

Manufacturing prices rose 8.0 percent year-on-year, driven by a 15.2 percent increase in the manufacture of chemicals and chemical products.

There was also a 12.7 percent rise in the manufacture of wearing apparel, a 10.7 percent increase in the manufacture of refined petroleum products, a 9.8 percent rise in the manufacture of basic metals, and a 3.2 percent increase in the manufacture of food products.

Meanwhile, prices of electricity, gas, steam, and air-conditioning supply increased by 2.0 percent, while prices of water supply, sewerage, waste management, and remediation activities rose by 8.3 percent.

On a monthly basis, the PPI declined 1.8 percent in May compared with April 2026, driven by a 2.0 percent decrease in manufacturing prices.

The decline was supported by a 6.3 percent drop in the manufacture of refined petroleum products, a 3.4 percent decrease in the manufacture of fabricated metal products (except machinery and equipment).

There was also a 1.5 percent decline in other economic activities, and a 0.3 percent decrease in the manufacture of wearing apparel that contributed to the overall PPI decline.

Meanwhile, prices for the manufacture of chemicals and chemical products increased 0.5 percent, the manufacture of basic metals rose 9.5 percent, and water supply, sewerage, waste management, and remediation activities increased 1.9 percent, while electricity, gas, steam, and air conditioning supply recorded no significant monthly change.