"Gulf Statistical Center": 2.2% Inflation Rate in Gulf States During July

Data from the Gulf Cooperation Council (GCC) Statistical Center on Wednesday showed that the general inflation rate in GCC countries reached 2.2 percent in July compared to the same month in 2025.

The Center noted in a report that the rate rose by 0.1 percentage point from the 2.1 percent recorded in June, adding that Gulf inflation remains at a "moderate and lower" level compared to the averages of several major economic blocs.

It added that the housing, water, electricity, and gas group led the main categories in its contribution to annual inflation by 0.82 percentage points, followed by the non-alcoholic food and beverages group with a contribution of 0.51 percentage points, and transport by 0.31 percentage points. Meanwhile, the miscellaneous goods and services group and the restaurants and hotels group each contributed 0.16 percentage points.

The health, furniture, and household equipment groups each contributed 0.01 percentage points, while the tobacco and alcoholic beverages group had a neutral contribution. In contrast, the clothing and footwear group reduced the inflation rate by 0.03 percentage points.

Regarding the annual change in prices of the main groups, the Center clarified that the housing, water, electricity, and gas group recorded the highest increase at 3.3 percent in July compared to the same month last year.

This was followed by the non-alcoholic food and beverages and miscellaneous goods and services groups, each at 2.8 percent.

It pointed out that prices in the culture and entertainment group rose by 2.7 percent, transport by 2.4 percent, and restaurants and hotels by 2.3 percent. Meanwhile, the education and insurance and financial services groups each recorded an increase of 1.4 percent.

Telecommunications prices also rose by 0.6 percent, while tobacco and alcoholic beverages and health each rose by 0.3 percent, and furniture and household equipment by 0.1 percent.

Conversely, the Center stated that prices in the clothing and footwear group fell by 0.7 percent on an annual basis, making it the only main category to record a decline during the period.

On a monthly basis, the Center’s report indicated that the general consumer price index rose by 0.3 percent in July compared to June of the same year.

Regarding the groups, it noted that the culture and entertainment group recorded the highest monthly increase at 2 percent, followed by the housing, water, electricity, and gas group at 0.6 percent, restaurants and hotels at 0.5 percent, transport at 0.3 percent, and non-alcoholic food and beverages at 0.2 percent.

Prices in the insurance and financial services and health groups also rose by 0.1 percent each, while prices in the tobacco and alcoholic beverages, telecommunications, and education groups remained unchanged.

In contrast, the Center clarified that prices in the miscellaneous goods and services group fell by 0.9 percent, and clothing and footwear and furniture and household equipment each fell by 0.1 percent.

In international comparisons, the Statistical Center’s data for July showed that the inflation rate in GCC countries, at 2.2 percent, was below the averages of the reference economic blocs.

The Center clarified that inflation reached 4.1 percent in the total OECD countries and 3.9 percent in the G20, while the G7, the European Union, and the euro area each recorded 3 percent.

On the level of international economies—which are the GCC countries’ largest import sources—India recorded the highest inflation rate at 4.6 percent, followed by Brazil at 4.4 percent, the United States at 3.4 percent, the United Kingdom at 3.1 percent, Italy at 2.9 percent, and both South Korea and Germany at 2.8 percent each. He clarified that the inflation rate in the GCC countries was lower than the rates recorded in these economies, but exceeded those in France, which stood at 2.1 percent, Japan at 1.9 percent, and China at 0.5 percent.