(Gulf Statistical Center): Inflation Rate in GCC Countries Reaches 2.2% in July

Muscat, 4 November (KUNA) -- Data from the Gulf Cooperation Council (GCC) Statistical Center showed on Wednesday that the general inflation rate in GCC countries stood at 2.2 percent in July 2025 compared to the same month in 2024. The center said in a report that the rate rose by 0.1 percentage point from the 2.1 percent recorded in June, noting that GCC inflation remains at a “moderate and low” 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, then 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 report noted that the culture and recreation group contributed 0.09 percentage points, education 0.05 percentage points, and insurance and financial services and communications each contributed 0.03 percentage points. Health and furniture and household equipment 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.

On 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 recreation group rose by 2.7 percent, transport by 2.4 percent, and restaurants and hotels by 2.3 percent. Meanwhile, education and insurance and financial services each recorded an increase of 1.4 percent. Communications prices rose by 0.6 percent, tobacco and alcoholic beverages and health each by 0.3 percent, and furniture and household equipment by 0.1 percent.

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

On a monthly basis, the center noted in its report that the general consumer price index rose by 0.3 percent in July compared to June of the same year. Regarding the groups, it highlighted that culture and recreation recorded the highest monthly increase at 2 percent, followed by housing, water, electricity, and gas 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 each rose by 0.1 percent, while prices in the tobacco and alcoholic beverages, communications, 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 center’s data for July showed that the GCC inflation rate of 2.2 percent was “below the averages of reference economic blocs.”

The Center clarified that inflation reached 4.1 percent in the aggregate of Organisation for Economic Co-operation and Development (OECD) countries and 3.9 percent in the Group of Twenty (G20), while the Group of Seven (G7), the European Union, and the euro area each recorded 3 percent. Among international economies, which are the highest importers for the Gulf Cooperation Council (GCC) countries, 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. The Center further noted that the inflation rate in GCC countries was lower than the rates recorded in these economies, but exceeded those in France, which recorded 2.1 percent, Japan at 1.9 percent, and China at 0.5 percent. It is worth noting that the Statistical Center of the Gulf Cooperation Council, headquartered in the Sultanate of Oman, was established in 2011 to serve as the official authorized body for data, information, and statistics related to the GCC countries, as well as to play a role in enhancing statistical and informational efforts among national statistical centers and planning authorities within the region. (End) M.J.B. / T.M.A.