The report of the Gulf Arab Cooperation Council Statistics Center on the inflation rate in 2025 reveals the stability of prices in the GCC countries, with the general inflation rate reaching 1.8% compared to 1.6% in 2024, below the 2% level for the second consecutive year, reflecting the success of economic policies in containing inflationary pressures and maintaining price stability.
main engine
The report notes that the Gulf inflation rate is one of the lowest in the world, lower than the inflation rate in emerging and developing countries of 5.3%, the global average of 4.2%, Japan 3.2%, the United States 2.6%, the European Union and developed countries each 2.5%, and the Eurozone 2.1%.
The report showed that while inflation rates among the GCC countries were similar, housing and various goods and services groups constituted the main drivers of Gulf inflation in 2025, contributing about 73% of the overall inflation rate.
The main groups that make up the consumer price index in GCC countries have the highest inflation rate for the goods and services group at 5.4%, followed by the housing group at 4.0%, the culture and entertainment group at 2.0%, the restaurant and hotel group at 1.6%, the food and beverage group at 1.2%, the education group at 1.0%, the tobacco group at 0.6%, and the clothing and footwear group. The Health, Communication and Furniture group stabilized at 0.0%, while the Transportation group recorded a decrease of -0.2%.
relative stability
The report reviewed the development of Gulf inflation from 2020 to 2025, explaining that it would rise from 1.5% in 2020 to 2.4% in 2021, peak at 3.2% in 2022, then decline to 2.3% in 2023, 1.6% in 2024, and then rise slightly to 1.8% in 2025, reflecting relative stability. compared to global developments.
The report shows that the main trading partners of the GCC countries have the highest inflation rate: Brazil at 5.0%, UK at 3.9%, Japan at 3.2%, India at 2.8%, USA at 2.6%, Germany at 2.2%, South Korea at 2.1%, Italy at 1.5%, and France at 0.9%, with China having the lowest inflation rate at 0.0%.
stress reduction
The report noted that a 2.1% decline in global food and beverage prices helped ease import inflation pressures, but a 15.2% rise in natural gas prices and geopolitical tensions remained risks that needed monitoring.
In its conclusion, the report said that the significant convergence of inflation rates among the GCC countries, which have remained stable below the 2 percent level, provides a favorable basis for strengthening the Gulf’s economic and monetary union, giving countries the fiscal space to continue economic reforms and development spending, and highlighting the importance of unifying statistical methodologies and strengthening policy preparations to counter future external pressures.
The report of the Statistical Center of the Gulf Cooperation Council States on inflation rates in 2025 revealed price stability in Council member countries, with the overall inflation rate reaching 1.8% compared to 1.6% in 2024, below the 2% level for the second consecutive year, reflecting the success of economic policies in containing inflationary pressures and maintaining price stability.
main driver
The report revealed that inflation rates in the Gulf countries are among the lowest in the world. The inflation rate in emerging and developing countries was 5.3%, the world average was 4.2%, Japan was 3.2%, the United States was 2.6%, the European Union and developed countries had an inflation rate of 2.5% each, and the Eurozone recorded 2.1%.
The report noted that inflation rates in Council member countries are relatively similar, with housing, goods and various services being the main drivers of Gulf inflation in 2025, together contributing about 73% of overall inflation.
At the level of the main groups that make up the Consumer Price Index for GCC countries, the miscellaneous goods and services group led the inflation rate at 5.4%, followed by the housing group at 4.0%, the culture and entertainment group at 2.0%, the restaurants and hotels group at 1.6%, the food and beverages group at 1.2%, the education group at 1.0%, the tobacco group at 0.6%, and clothing and footwear. group was 0.4%, while the Health, Communication and Furniture group was stable at 0.0% and the Transportation group recorded a decrease of -0.2%.
relative stability
The report reviewed the development of Gulf inflation from 2020 to 2025, explaining that it would rise from 1.5% in 2020 to 2.4% in 2021, peak at 3.2% in 2022, then decline to 2.3% in 2023, 1.6% in 2024, and then rise slightly to 1.8% in 2025, reflecting relative stability. Toward global development.
The report shows that the main trading partners of the Gulf Cooperation Council countries had the highest inflation rate: Brazil at 5.0%, UK at 3.9%, Japan at 3.2%, India at 2.8%, USA at 2.6%, Germany at 2.2%, South Korea at 2.1%, Italy at 1.5%, and France at 0.9%, with China having the lowest inflation rate at 0.0%.
relieve pressure
The report noted that a 2.1% decline in global food and beverage prices helped ease import inflation pressures. However, the 15.2% rise in natural gas prices and geopolitical tensions still pose risks that require monitoring.
The report concluded that the significant convergence and stabilization of inflation rates among Council member countries below the 2 percent level provides favorable conditions for strengthening economic and monetary union in the Gulf and giving countries the fiscal space to continue economic reforms and development spending, while highlighting the importance of standardizing statistical methods and strengthening policy preparedness to counter future external pressures.
