Inflation across the Gulf Cooperation Council countries stood at 1.8% in 2025, up slightly from 1.6% in 2024, but remained below the 2% threshold for the second consecutive year, according to the Gulf Statistical Center.
In its report on inflation rates in the GCC countries for 2025, the center said the continued stability reflected the success of economic policies in containing inflationary pressures and maintaining price stability.
The center noted that GCC inflation remained among the lowest globally, below the rates recorded by emerging and developing economies at 5.3%, the global average at 4.2%, Japan at 3.2%, the United States at 2.6%, the European Union and advanced economies at 2.5% each, and the Eurozone at 2.1%.
Inflation rates across the GCC countries were broadly similar in 2025, with housing and miscellaneous goods and services emerging as the main drivers. Together, the two groups accounted for about 73% of overall Gulf inflation.
Among the main components of the consumer price index, miscellaneous goods and services recorded the highest inflation rate at 5.4%, followed by housing at 4%, culture and entertainment at 2%, and restaurants and hotels at 1.6%.
Food and beverages recorded inflation of 1.2%, while education rose 1%, tobacco increased 0.6%, and clothing and footwear rose 0.4%. Health, communications and furniture prices remained unchanged, while the transport group recorded a 0.2% decline.
The report also reviewed the development of GCC inflation between 2020 and 2025. Inflation rose from 1.5% in 2020 to 2.4% in 2021, before reaching a peak of 3.2% in 2022. It then declined to 2.3% in 2023 and 1.6% in 2024, before edging up to 1.8% in 2025.
The center said the relative convergence and stability of inflation rates across GCC countries below 2% provide a favorable foundation for strengthening Gulf economic and monetary integration.
It added that the stable inflation environment gives GCC countries greater fiscal space to continue economic reforms and development spending, while stressing the importance of harmonizing statistical methodologies and strengthening policy readiness to respond to potential external pressures.
