The latest figures from the Statistical Centre for the Cooperation Council for the Arab Countries of the Gulf (GCC-Stat) reveal that the average inflation rate in the GCC countries was 1.7% for 2024, a decrease from 2.2% in 2023. This stability highlights the region’s robust economic management.
The data showed variations across different sectors. The housing sector experienced the most significant increase at 5.7%, followed by restaurants, hotels, culture, and entertainment at 1.8%. Education saw an increase of 1.7%, while food and beverages rose by 1.5%, and goods and services increased by 1.1%.
Conversely, the health sector saw a slight decline of 0.2%, with clothing and footwear dropping by 0.7%. Communications and tobacco both saw inflation rates of 1.0% and 1.1%, respectively, while furniture increased by 1.6%. The transport sector recorded the largest drop at 2.0%.
Between 2020 and 2024, the GCC inflation rate exhibited moderate fluctuations, peaking at 3.1% in 2022 before declining to 1.7% in 2024. This trend reflects the successful economic policies implemented by GCC countries to mitigate inflationary pressures.
In comparison to major trading partners, the GCC’s inflation rate was lower, with Brazil at 4.4%, India at 3.8%, the UK at 3.3%, the US at 2.9%, and Japan at 2.7%. South Korea and Germany reported rates of 2.3%, while France stood at 2.0%.
Both China and Italy had lower rates than the GCC, at 0.2% and 1.0%, respectively, with the EU at 2.6%.
