GCC Inflation Data Announced; Recorded at 1.8 Percent in 2025
The GCC inflation rate in the Gulf Cooperation Council countries was recorded at 1.8 percent in 2025. According to data released by the Statistical Centre for the Cooperation Council for the Arab Countries of the Gulf, GCC-Stat, the rate remained below 2 percent for the second consecutive year, despite a limited increase from 1.6 percent in 2024. The report stated that this outlook reflected the impact of economic policies implemented to contain inflationary pressures and maintain price stability.
GCC Inflation Remained Below the Global Average
The GCC inflation rate remained below the global average of 4.2 percent and the 5.3 percent recorded in emerging economies. Inflation was recorded at 3.2 percent in Japan, 2.6 percent in the United States, 2.5 percent in the European Union and advanced economies, and 2.1 percent in the Eurozone.
Housing and miscellaneous goods and services accounted for approximately 73 percent of the overall increase in consumer prices across the region. Prices rose by 5.4 percent in miscellaneous goods and services and by 4 percent in housing.
Prices increased by 2 percent in recreation and culture, 1.6 percent in restaurants and hotels, 1.2 percent in food and beverages, 1 percent in education, 0.6 percent in tobacco, and 0.4 percent in clothing and footwear. No change was recorded in healthcare, communications, furniture, and household goods, while transportation prices declined by 0.2 percent.
Price Data Gains Importance in Retail and E-Commerce
Consumer prices are among the data sets monitored by AI-powered demand forecasting, price optimisation, and inventory planning systems used in retail and e-commerce. Artificial intelligence applications can generate retail forecasts by using sales history, e-commerce traffic, campaigns, and various demand indicators.
The GCC inflation rate increased from 1.5 percent in 2020 to 2.4 percent in 2021 and peaked at 3.2 percent in 2022. After declining to 2.3 percent in 2023 and 1.6 percent in 2024, the rate stood at 1.8 percent in 2025.
Brazil Recorded the Highest Rate Among Trading Partners
Among the GCC countries’ major trading partners, the highest inflation rate was recorded in Brazil at 5 percent. Brazil was followed by the United Kingdom at 3.9 percent, Japan at 3.2 percent, India at 2.8 percent, the United States at 2.6 percent, Germany at 2.2 percent, South Korea at 2.1 percent, Italy at 1.5 percent, and France at 0.9 percent. Inflation in China was reported at zero.
While the 2.1 percent decline in global food and beverage prices helped limit imported inflation, it was reported that the 15.2 percent increase in natural gas prices and geopolitical tensions continued to pose risks. The report stated that similar inflation rates below 2 percent created a favourable environment for economic and monetary integration and provided fiscal space for reforms and development spending. It also emphasised the need to harmonise statistical methodologies and strengthen policy preparedness against external shocks. (GCC inflation data)