Saudi Arabia has kept inflation below 2 percent despite renewed global price pressures triggered by the Middle East war. Consumer prices rose 1.7 percent year on year in April, standing out against a global backdrop in which inflation forecasts have been revised upward and energy and commodity prices are surging.

The Kingdom’s inflation has been driven mainly by housing costs, with rents pushing the housing, water and utilities category up 3.8 percent. Transport and restaurant prices also edged higher, while food inflation remained relatively contained at 0.6 percent annually, despite broader regional pressure on grocery prices.

Across the Gulf region, inflation trends have been more uneven. Kuwait, Qatar and Oman recorded stronger price growth, particularly in food and services, while fuel prices in the United Arab Emirates jumped sharply. Bahrain remained among the lower inflation economies, though food prices rose.

Global risks remain significant, with the World Bank projecting a sharp rise in energy prices and warning that prolonged disruptions could further lift inflation and borrowing costs. Central banks in the region have kept interest rates steady in line with the United States Federal Reserve, as expectations for rate cuts have been delayed amid persistent global price pressures.