A report by the GCC Statistical Center (GCC-Stat) on inflation rates for 2025 showed that prices across the Gulf Cooperation Council (GCC) countries remained stable, with overall inflation reaching 1.8%, compared with 1.6% in 2024.
The rate remained below the 2% threshold for a second consecutive year, reflecting the effectiveness of economic policies in containing inflationary pressures and maintaining price stability.
The report said GCC inflation was among the lowest globally, standing below the global average of 4.2%, emerging market and developing economies at 5.3%, the United States at 2.6%, the European Union at 2.5%, the euro area at 2.1%, advanced economies at 2.5%, and Japan at 3.2%.
It noted that inflation rates across GCC countries remained broadly aligned, while housing and miscellaneous goods and services were the main drivers of GCC-wide inflation in 2025, jointly accounting for around 73% of overall inflation.
Among the main groups comprising the Consumer Price Index, miscellaneous goods and services recorded the highest inflation rate at 5.4%, followed by housing at 4.0%, recreation and culture at 2.0%, restaurants and hotels at 1.6%, food and beverages at 1.2%, education at 1.0%, tobacco at 0.6%, and clothing and footwear at 0.4%.
Health, communications and furniture recorded no change, while transport prices declined by 0.2%.
The report reviewed GCC inflation trends between 2020 and 2025, noting that inflation rose from 1.5% in 2020 to 2.4% in 2021, before peaking at 3.2% in 2022. It then eased to 2.3% in 2023 and 1.6% in 2024, before edging up slightly to 1.8% in 2025, reflecting relative stability compared with global developments.
With regard to the GCC’s major trading partners, inflation stood at 0.0% in China, 3.2% in Japan, 2.1% in South Korea, 2.8% in India, 5.0% in Brazil, 2.6% in the United States, 0.9% in France, 3.9% in the United Kingdom, 2.2% in Germany and 1.5% in Italy.
The report said that a 2.1% decline in global food and beverage prices helped ease imported inflationary pressures. However, a 15.2% rise in natural gas prices and continued geopolitical tensions remain risks requiring close monitoring.
In its conclusion, the report said the close convergence of inflation rates among GCC countries, together with their stability below 2%, provides a favourable foundation for strengthening Gulf economic and monetary integration.
It added that low inflation gives GCC countries fiscal space to continue economic reforms and development spending, while underscoring the importance of harmonising statistical methodologies and strengthening policy preparedness to address any future external pressures.
Source: gccstat.org
