GCC inflation remains below 2% in 2025

Inflation across the Gulf Cooperation Council (GCC) countries was recorded at 1.8% in 2025, according to a report by the Gulf Statistical Center. While this is a slight increase from the 1.6% recorded in 2024, it marks the second consecutive year that inflation has remained below the 2% threshold.

The GCC inflation rate remains significantly lower than several global benchmarks, including the global average of 4.2%, emerging and developing economies at 5.3%, Japan at 3.2%, and the United States at 2.6%.

Housing and miscellaneous goods and services were the primary drivers of inflation, collectively accounting for approximately 73% of the total. Specifically, miscellaneous goods and services saw the highest inflation rate at 5.4%, followed by housing at 4%. Other sectors showed more modest changes: culture and entertainment rose by 2%, restaurants and hotels by 1.6%, food and beverages by 1.2%, and education by 1%. Conversely, transport prices saw a decline of 0.2%, while health, communications, and furniture prices remained unchanged.

The report noted that inflation in the region has moderated since peaking at 3.2% in 2022. This period of stability is viewed as a favorable foundation for enhancing economic and monetary integration across the member states.