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The General Authority for Statistics detailed the annual increase in its producer price index for May. Manufacturing prices advanced 8.0 percent from a year earlier and accounted for the largest share of the headline rise. The authority’s assessment placed the overall index at a level reflecting sustained cost pressures across domestic production.
Chemicals and chemical products registered a 15.2 percent jump while wearing apparel climbed 12.7 percent. Refined petroleum products gained 10.7 percent with basic metals rising 9.8 percent and food products increasing 3.2 percent according to GASTAT figures. These subsector movements underscored the breadth of cost increases within manufacturing during the period.
Electricity gas steam and air conditioning supply prices rose 2.0 percent year-on-year. Water supply sewerage waste management and remediation activities recorded an 8.3 percent advance over the same interval. The authority noted that these utilities categories added further upward momentum to the national PPI reading.
The index declined 1.8 percent on a monthly basis from April. Manufacturing prices eased 2.0 percent with refined petroleum products dropping 6.3 percent and fabricated metal products falling 3.4 percent. Offsetting factors included a 0.5 percent increase in chemicals and a 9.5 percent gain in basic metals the GASTAT data showed.
GASTAT compiles the producer price index to measure average changes in selling prices received by domestic producers. The metric functions as an upstream gauge of inflationary trends and cost developments before they reach consumers. The authority weights components according to their relative importance in the Saudi economy.
Earlier GASTAT releases had signaled ongoing cost pressures in manufacturing through the opening months of 2026. The May outcome aligns with patterns observed in global input prices that shape industrial activity across the Kingdom. Economists track the index for indications about non-oil sector momentum and broader price dynamics.
