GCC Inflation Stays Low, Projected at 1.8 Percent in 2025

GCC inflation is expected to remain stable in 2025, according to the GCC Statistical Center. The projected rate for 2025 is 1.8 percent, a slight increase from 1.6 percent in 2024 but still below 2 percent for the second consecutive year. This stability reflects the effectiveness of economic policies in containing inflationary pressures and maintaining price stability.

The center's report noted that GCC inflation remains among the lowest globally, with rates significantly lower than those in emerging and developing economies and major trading partners such as Japan, the United States, and the European Union.

Housing and miscellaneous goods and services were the main drivers of inflation in the GCC during 2025, accounting for around 73 percent of overall inflation. Miscellaneous goods and services recorded the highest inflation rate at 5.4 percent, followed by housing at 4 percent.

The center also warned that a 15.2 percent increase in natural gas prices, coupled with ongoing geopolitical tensions, remains a risk requiring close monitoring.