Gulf Inflation Stabilizes at 1.8 Percent, Below Global Average

The Gulf Cooperation Council (GCC) countries have maintained low inflation rates in 2025, according to the Gulf Statistical Center. The overall inflation rate across the GCC stood at 1.8 percent, a slight increase from 1.6 percent in 2024 but still below the 2 percent threshold for the second consecutive year.

The center noted that GCC inflation remains among the lowest globally, with rates significantly lower than those recorded by emerging and developing economies, as well as advanced economies such as Japan, the United States, the European Union, and the Eurozone. Housing and miscellaneous goods and services were identified as the main drivers of Gulf inflation, accounting for approximately 73 percent of overall GCC inflation.

The report highlighted that inflation rates across the GCC countries have been relatively stable over the past five years, with a slight peak in 2022 at 3.2 percent before declining to 1.6 percent in 2024 and edging up to 1.8 percent in 2025.