GCC Inflation Stays Subdued Amid Ongoing US-Iran Conflict
The Gulf Cooperation Council (GCC) countries saw inflation rates remain subdued in June and July 2026, despite the ongoing US-Iran conflict. The regional central banks, including the UAE Central Bank, kept interest rates unchanged through the first seven months of 2026.
Kamco Invest's GCC Inflation Update reported that the conflict has disrupted roughly 30% of global fertiliser shipments transiting the Strait of Hormuz, contributing to a rise in global food prices. The report warned that intermittent hostilities between the US and Iran risk fuelling a broader resurgence in global inflation.
The UAE hiked petrol prices in June 2026 but reduced them in July as global crude oil prices eased. Dubai's Consumer Price Index rose 5.3% year-on-year in July, easing from a 5.7% peak in June due to increased fuel and imported food costs.