Gulf economic policies succeeded in containing inflationary pressures below the 2% level for the second consecutive year

The Statistical Center of the Gulf Cooperation Council (GCC) countries stated that Gulf economic policies “succeeded” in containing inflationary pressures and maintaining price stability in 2025, keeping the rate below the 2% threshold for the second consecutive year.

In a report issued on “Inflation Rates for 2025,” the Center added that the inflation rate reached 1.8% in 2025, compared to 1.6% in 2024. It emphasized that the Gulf inflation rate is “among the lowest” globally, falling below the 5.3% 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’ 2.5% each, and the Eurozone’s 2.1%.

The Center noted that inflation rates among GCC member states were closely aligned, while the housing and diverse goods and services groups constituted the “main drivers” of Gulf inflation in 2025, jointly contributing approximately 73% to overall inflation.

Regarding the main groups comprising the Consumer Price Index in GCC countries, the Center stated that the diverse goods and services group led inflation rates at 5.4%, followed by the housing group at 4%, the culture and entertainment group at 2%, and the restaurants and hotels group at 1.6%. These were followed by the food and beverages group at 1.2%, education at 1%, tobacco at 0.6%, and clothing and footwear at 0.4%. Meanwhile, the health, communications, and furniture groups remained stable at zero percent, while the transport group recorded a decline of 0.2%.

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

Regarding the GCC countries’ main trading partners, the Center clarified that inflation rates were ranked from highest to lowest: Brazil first at 5%, followed by the United Kingdom at 3.9%, Japan at 3.2%, India at 2.8%, the United States at 2.6%, Germany at 2.2%, South Korea at 2.1%, Italy at 1.5%, and France at 0.9%. China recorded the lowest inflation rate at 0%.

The Center pointed out that the global decline in food and beverage prices by 2.1% contributed to “alleviating imported inflationary pressures,” although the 15.2% rise in natural gas prices and geopolitical tensions remain “risks” requiring continued monitoring.

The Center affirmed that the significant convergence in inflation rates among GCC member states and their stability below the 2% threshold provide a favorable foundation for enhancing Gulf economic and monetary integration, while also granting countries fiscal space to continue economic reforms and developmental spending. In this regard, it emphasized the importance of harmonizing statistical methodologies and strengthening policy readiness to address any future external pressures.

The Statistical Center of the Gulf Cooperation Council countries, headquartered in the Sultanate of Oman, was established to serve as the official body authorized to provide data, information, and statistics related to GCC member states, as well as to enhance statistical and informational work among national statistical centers and planning authorities within them.