GCC Inflation Holds Steady Below 2%

The Gulf Cooperation Council (GCC) countries have maintained stable prices despite rising inflation rates globally. According to the Gulf Statistical Center, GCC inflation stood at 1.8% in 2025, a slight increase from 1.6% in 2024 but still below the 2% threshold for the second consecutive year.

The center's report noted that GCC inflation rates remained among the lowest globally, lower than the 5.3% recorded by emerging and developing economies, the global average of 4.2%, Japan's 3.2%, the United States' 2.6%, the European Union's 2.5%, the Eurozone's 2.1%, and many other countries.

The main drivers of Gulf inflation were housing and miscellaneous goods and services, accounting for about 73% of overall inflation. Miscellaneous goods and services recorded the highest inflation rate at 5.4%, followed by housing at 4%, culture and entertainment at 2%, and restaurants and hotels at 1.6%.