GCC inflation holds steady at 1.8% in 2025, among world's lowest

Inflation across the six Gulf Cooperation Council states remained at 1.8% in 2025, keeping the region among the world's lowest-inflation economies for a second consecutive year. The figure edged up from 1.6% in 2024, but stayed below the 2% threshold, according to a report by the GCC Statistical Centre.

The GCC rate was well below the 5.3% average for emerging and developing economies and the global average of 4.2%. It also trailed inflation in Japan at 3.2%, the United States at 2.6% and the eurozone at 2.1%.

Housing and miscellaneous goods and services drove most of the increase, together accounting for about 73% of the region's inflation. Miscellaneous goods and services recorded the highest rise among consumer price groups, at 5.4%, followed by housing at 4%. Culture and recreation rose 2%, restaurants and hotels 1.6%, food and beverages 1.2%, education 1% and tobacco 0.6%.

Clothing and footwear increased 0.4%, while health, communications and furniture prices were unchanged. Transport prices fell 0.2%. The report said a 2.1% global decline in food and beverage prices helped ease imported inflation, although natural gas prices rose 15.2% and geopolitical tensions remained risks.

GCC inflation rose from 1.5% in 2020 to 2.4% in 2021 and peaked at 3.2% in 2022. It then moderated to 2.3% in 2023, 1.6% in 2024 and 1.8% in 2025. The report said sustained stability below 2% could support deeper economic and monetary integration, fiscal space for reforms and development spending, and greater readiness for future external shocks.