Tuesday, July 14, 2026

"Al Jazeera" - Economy:

A report by the Statistical Center for the Cooperation Council for the Arab States of the Gulf on inflation rates for 2025 showed continued price stability in GCC countries, with the general inflation rate reaching 1.8% compared to 1.6% in 2024, remaining below 2% for the second consecutive year, an indicator reflecting the success of economic policies in containing inflationary pressures and maintaining price stability.

The report noted that the Gulf inflation rate is among the lowest globally, lower than the 5.3% inflation rate in emerging and developing economies, the global average of 4.2%, Japan's 3.2%, the United States' 2.6%, the European Union and advanced economies at 2.5% each, and the Eurozone at 2.1%.

The report indicated that inflation rates among GCC countries were close, with the housing and miscellaneous goods and services groups forming the main driver of Gulf inflation in 2025, together contributing about 73% of total inflation.

At the level of the main groups comprising the consumer price index in GCC countries, the miscellaneous goods and services group topped inflation rates at 5.4%, followed by the housing group at 4.0%, then the culture and entertainment group at 2.0%, the restaurants and hotels group at 1.6%, the food and beverages group at 1.2%, the education group at 1.0%, the tobacco group at 0.6%, and the clothing and footwear group at 0.4%, while the health, communications, and furniture groups stabilized at 0.0%, and the transport group recorded a decline of -0.2%.

The report reviewed the development of Gulf inflation during the period 2020–2025, noting that it rose from 1.5% in 2020 to 2.4% in 2021, then peaked at 3.2% in 2022, before declining to 2.3% in 2023 and 1.6% in 2024, then rising slightly to 1.8% in 2025, reflecting relative stability compared to global developments.

Regarding the main trading partners of the GCC countries, the report showed that inflation rates were ordered from highest to lowest as follows: Brazil 5.0%, the United Kingdom 3.9%, Japan 3.2%, India 2.8%, the United States 2.6%, Germany 2.2%, South Korea 2.1%, Italy 1.5%, and France 0.9%, while China recorded the lowest inflation rate at 0.0%.

The report noted that the global decline in food and beverage prices by 2.1% helped mitigate imported inflationary pressures, but the rise in natural gas prices by 15.2% and geopolitical tensions remain risks requiring monitoring.

The report concluded that the significant convergence in inflation rates among GCC countries and their stability below 2% provide a favorable foundation for enhancing Gulf economic and monetary integration, and grant countries fiscal space to continue economic reforms and development spending, while emphasizing the importance of unifying statistical methodologies and enhancing policy readiness to face any future external pressures.

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