GCC Inflation Remains Subdued Amid Ongoing US-Iran Conflict

Inflation in the Gulf Cooperation Council (GCC) remained low in June and July despite fluctuations in oil and gas prices due to the ongoing US-Iran conflict, according to a report from Kamco Invest. The Kuwait-based investment firm stated that the geopolitical situation in the Middle East is expected to put upward pressure on global inflation in the short term.

The report noted that Saudi Arabia's annual inflation remained below 2 percent central bank benchmark, increasing by 1.8 percent year on year in July. In contrast, Oman's inflation rose 3.2 percent year on year in July, with food and non-alcoholic beverages and transportation being the main drivers.

Kamco attributed Dubai's consumer price index rise to instability stemming from the US-Iran war, resulting in higher fuel and imported food prices. Bahrain's inflation rate increased 2.3 percent year on year in June, with the general CPI closing the month at 103.7 points.