Saudi special forces salute in front of a screen displaying images of Saudi King Salman, right, and Crown Prince Mohammed bin Salman after a military parade in preparation for the annual Hajj pilgrimage, in the Muslim holy city of Mecca, Saudi Arabia, Sunday, July 3, 2022. AP
"A generous royal order was issued approving the allocation of financial support in the amount of 20 billion riyals (around $5.3 billion) to face the repercussions of rising prices globally," the official Saudi Press Agency reported, attributing the decision to King Salman.
Roughly half that amount would come via direct cash transfers to social security beneficiaries, the SPA report said.
Earlier on Monday, Crown Prince Mohammed bin Salman "stressed the need to take into account the neediest citizens in the face of international developments that resulted in rising costs of some basic needs", a separate SPA report said.
Chairing a meeting of the kingdom's economic affairs council, Prince Mohammed, reportedly made the point that government offices must respond to global supply chain issues and rising prices to protect consumers' interests.
Saudi Arabia, the world's top oil exporter, has not been hit as hard by inflation as other countries in the region.
The most recent consumer price index for Saudi Arabia showed an annual increase of 2.2 percent in May, with prices up 4.2 percent for food and beverages and four percent for transport.
Nevertheless, the kingdom's tightly controlled social media landscape has featured more frequent griping about rising prices in recent weeks, including Twitter hashtags calling for a boycott of eggs and a well-known dairy company.
Saudi Arabia's economy has generally performed well this year, especially since Russia's invasion of Ukraine sent energy prices soaring.
GDP is expected to grow by 7.6 percent in 2022, the International Monetary Fund said in April.
In early May, the Gulf monarchy reported its fastest economic growth rate in a decade, as a surging oil sector fuelled a 9.6 percent rise in the first quarter over the same period of 2021.
Saudi Arabia's announcement came as the United Arab Emirates similarly said it was doubling the budget for its social security programme to 28 billion dirhams (about $7.6 billion) after a rise in fuel prices.