GCC Inflation Rate Holds Steady at 1.8% in 2025

The Gulf Cooperation Council (GCC) inflation rate has remained steady at 1.8% in 2025, according to a report by the GCC Statistical Centre (GCC-Stat). This marks the second consecutive year below the 2% threshold, showing the effectiveness of regional economic policies in containing price pressures.

The GCC's inflation rate is among the lowest globally, trailing the emerging and developing economies' average of 5.3%, the global average of 4.2%, Japan's 3.2%, the United States' 2.6%, and the eurozone's 2.1%.

Housing and miscellaneous goods and services were the main drivers of Gulf inflation, accounting for about 73% of the total increase. Miscellaneous goods and services posted the highest inflation at 5.4%, followed by housing at 4%, culture and recreation at 2%, restaurants and hotels at 1.6%, food and beverages at 1.2%, education at 1%, tobacco at 0.6%, clothing and footwear rose 0.4%, while health, communications, and furniture were unchanged.

The report traced the trajectory of GCC inflation from 2020 to 2025, showing a rise from 1.5% in 2020 to 2.4% in 2021, before peaking at 3.2% in 2022. It then moderated to 2.3% in 2023 and 1.6% in 2024, before edging up slightly to 1.8% in 2025.

The report concluded that the convergence of inflation rates across the GCC and their sustained stability below 2% provide a strong foundation for deeper economic and monetary integration, while giving member states fiscal space for reforms and development spending.