Gulf inflation holds at 1.8% in 2025 despite global pressure, far below the world average
The GCC region maintained stable low inflation in 2025 with rates at 1.8%, significantly undercutting the global and emerging market averages.
Gulf Cooperation Council countries kept inflation low throughout 2025, with an annual rate of 1.8 percent recorded for the year. This represents a slight increase from 1.6 percent in 2024 but remains well below the official 2 percent threshold for the second consecutive year. Data released by the GCC Statistical Center indicates that Gulf inflation levels continued to be among the lowest globally, showing a distinct gap against the world average of 4.2 percent and emerging market rates of 5.3 percent. While inflation rates across member states remained relatively similar, significant price pressures concentrated on housing and diverse goods and services categories. These two sectors combined accounted for approximately 73 percent of the overall GCC inflation rate during 2025. The statistical report highlights the region's continued ability to contain cost pressures within its economies despite international headwinds.
