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GCC Inflation Remains Below 2% for Second Consecutive Year

  • Jul 13
  • 2 min read
RIYADH, July 13, Saudi Arabia Breaking News — Inflation across the Gulf Cooperation Council remained among the lowest globally in 2025, rising slightly to 1.8% from 1.6% in 2024, according to a report by the GCC Statistical Centre. The rate remained below 2% for a second consecutive year, reflecting broad price stability across the six GCC economies. GCC inflation was lower than the 5.3% recorded in emerging and developing economies, the global average of 4.2%, Japan’s 3.2%, the United States’ 2.6%, the 2.5% rates recorded in both the European Union and advanced economies, and the euro area’s 2.1%. Housing and miscellaneous goods and services were the main sources of inflation across the Gulf, jointly accounting for approximately 73% of the overall increase. Miscellaneous goods and services recorded the highest category-level inflation at 5.4%, followed by housing at 4%, recreation and culture at 2%, restaurants and hotels at 1.6%, and food and beverages at 1.2%. Education prices increased by 1%, tobacco by 0.6%, and clothing and footwear by 0.4%. Health, communications, furnishings and household equipment recorded no annual change, while transport prices declined by 0.2%. GCC inflation has eased significantly since reaching 3.2% in 2022. The rate declined to 2.3% in 2023 and 1.6% in 2024 before edging higher last year. A 2.1% decline in global food and beverage prices helped limit imported inflationary pressures. However, the report identified a 15.2% increase in natural gas prices and continuing geopolitical tensions as risks requiring close monitoring. GCC-Stat said the convergence of inflation rates and their stability below 2% create favorable conditions for deeper Gulf economic and monetary integration while providing member states with greater capacity to continue economic reforms and development spending.

RIYADH, July 13, Saudi Arabia Breaking News — Inflation across the Gulf Cooperation Council remained among the lowest globally in 2025, rising slightly to 1.8% from 1.6% in 2024, according to a report by the GCC Statistical Centre.


The rate remained below 2% for a second consecutive year, reflecting broad price stability across the six GCC economies.


GCC inflation was lower than the 5.3% recorded in emerging and developing economies, the global average of 4.2%, Japan’s 3.2%, the United States’ 2.6%, the 2.5% rates recorded in both the European Union and advanced economies, and the euro area’s 2.1%.


Housing and miscellaneous goods and services were the main sources of inflation across the Gulf, jointly accounting for approximately 73% of the overall increase.


Miscellaneous goods and services recorded the highest category-level inflation at 5.4%, followed by housing at 4%, recreation and culture at 2%, restaurants and hotels at 1.6%, and food and beverages at 1.2%.


Education prices increased by 1%, tobacco by 0.6%, and clothing and footwear by 0.4%. Health, communications, furnishings and household equipment recorded no annual change, while transport prices declined by 0.2%.


GCC inflation has eased significantly since reaching 3.2% in 2022. The rate declined to 2.3% in 2023 and 1.6% in 2024 before edging higher last year.


A 2.1% decline in global food and beverage prices helped limit imported inflationary pressures. However, the report identified a 15.2% increase in natural gas prices and continuing geopolitical tensions as risks requiring close monitoring.


GCC-Stat said the convergence of inflation rates and their stability below 2% create favorable conditions for deeper Gulf economic and monetary integration while providing member states with greater capacity to continue economic reforms and development spending.

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