Muscat, September 06 (QNA) - Inflation across the Gulf Cooperation Council (GCC) countries stood at 1.8 percent in 2025, up slightly from 1.6 percent in 2024, but remained below the 2 percent threshold for the second consecutive year, according to the Gulf Statistical Center, reflecting the success of economic policies in containing inflationary pressures and maintaining price stability.
The center noted that GCC inflation remained among the lowest globally, below the rates recorded by emerging and developing economies at 5.3 percent, the global average at 4.2 percent, Japan at 3.2 percent, the United States at 2.6 percent, the European Union and advanced economies at 2.5 percent each, and the Eurozone at 2.1 percent.
The report indicated that the inflation rates across the GCC countries were broadly similar in 2025, with housing and miscellaneous goods and services emerging as the main drivers, as the two groups accounted for about 73 percent of overall Gulf inflation.
The report also reviewed the development of GCC inflation between 2020 and 2025, pointing out that inflation rose from 1.5 percent in 2020 to 2.4 percent in 2021, before reaching a peak of 3.2 percent in 2022. It then declined to 2.3 percent in 2023 and 1.6 percent in 2024, before edging up to 1.8 percent in 2025.
The center said the relative convergence and stability of inflation rates across GCC countries below 2 percent provide a favorable foundation for strengthening Gulf economic and monetary integration.
The stable inflation environment gives GCC countries greater fiscal space to continue economic reforms and development spending, the center added, stressing the importance of harmonizing statistical methodologies and strengthening policy readiness to respond to potential external pressures. (QNA)