Gulf inflation rate slows to 2% in April 2026
The general inflation rate in Gulf countries recorded a slight slowdown in April 2026, reaching 2 percent year-on-year, down from 2.1 percent in March, a decrease of 0.1 percentage points.
Data from the Gulf Cooperation Council (GCC) Statistical Center showed that the decline in the general inflation rate in the GCC states follows periods that witnessed deflation rates in 2019, and an increase exceeding 4 percent in mid-2021, before returning to more moderate and stable levels in subsequent years.
The housing, water, electricity, and gas group led the sectors with the highest contribution to inflation, accounting for 0.77 percentage points, which is more than a third of the general inflation rate. This was followed by the miscellaneous goods and services group with a contribution of 0.37 percentage points, then food and beverages at 0.33 percentage points, and transport at 0.28 percentage points. The clothing and footwear group was the only one to record a decline, by 0.05 percentage points.
On a year-on-year basis, the miscellaneous goods and services group recorded the highest price increase at 6.3 percent, followed by the housing, water, electricity, and gas group at 3.1 percent, then insurance and financial services at 2.2 percent, and transport at 2.1 percent. Food and beverage prices also rose by 1.8 percent, education by 1.5 percent, restaurants and hotels by 1.3 percent, communications by 1 percent, and culture and recreation by 0.8 percent.
Increases also included the tobacco and beverages group at 0.4 percent, health at 0.4 percent, and furniture and household equipment at 0.3 percent. Conversely, clothing and footwear prices fell by 1.2 percent year-on-year, making it the only group to record a price decline during the period.
On a monthly basis, the general consumer price index rose by 0.2 percent in April compared to March 2026. The largest monthly increases were in food and beverage prices at 0.9 percent, insurance and financial services at 0.5 percent, and transport at 0.3 percent. Conversely, miscellaneous goods and services prices fell by 0.6 percent, while culture and recreation, and restaurants and hotels each fell by 0.2 percent, and clothing and footwear by 0.1 percent.
International comparisons showed that the inflation rate in GCC states remains at levels lower than the averages of major global economic blocs, standing at 2 percent, compared to 4.3 percent for the G20, 4.4 percent for the Organisation for Economic Co-operation and Development (OECD), 3.2 percent for the G7, 3.2 percent for the European Union countries, and 3.1 percent for the Eurozone.
At the level of several global economies, India recorded the highest inflation rate at 4.5 percent, followed by Brazil at 4.4 percent, the United States at 3.8 percent, the United Kingdom at 3 percent, Germany at 2.9 percent, Italy at 2.7 percent, South Korea at 2.6 percent, and France at 2.2 percent.
Conversely, the 2 percent Gulf inflation rate was higher than Japan’s 1.4 percent and China’s 1.2 percent, remaining within a moderate range compared to many advanced and emerging economies.
