Gulf inflation stabilizes at 1.8% in 2025
The Statistical Center for the Cooperation Council for the Arab States of the Gulf revealed that the general inflation rate in the GCC countries reached 1.8% in 2025, compared to 1.6% in 2024, remaining below the 2% level for the second consecutive year, an indicator reflecting price stability and the effectiveness of economic policies in curbing inflationary pressures.
The housing and miscellaneous goods and services groups were the main drivers of inflation.
The report explained that the Gulf inflation rate is among the lowest globally, coming in below the global average of 4.2% and the average for emerging and developing economies of 5.3%, and also recording lower levels than the United States, Japan, the European Union, and the Eurozone.
The report indicated that the housing and miscellaneous goods and services groups were the main drivers of inflation during the year, contributing about 73% of total inflation, while the transport group recorded a decrease of 0.2%, and the health, communications, and furniture groups remained unchanged.
It showed that Gulf inflation peaked at 3.2% in 2022 before gradually 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 economic fluctuations.
The report also noted that the decline in global food prices helped ease imported inflationary pressures, while geopolitical tensions and rising natural gas prices remain among the most prominent risks requiring monitoring.
The center affirmed that continued low inflation supports Gulf economic and monetary integration, and provides room to continue economic reforms and development spending, while emphasizing the importance of enhancing the readiness of economic policies to face any future external changes.
Original source: Akhbaar24
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