The average inflation rate in the GCC countries was recorded at 1.7 percent in 2024, a decrease from 2.2 percent in 2023, according to the latest data released by GCC-Stat.
The data reveals significant variation in the rates of change across major groups, with the housing group experiencing the highest increase at 5.7 percent, followed by restaurants and hotels and culture and entertainment, both at 1.8 percent. This was succeeded by education at 1.7 percent, food and beverages at 1.5 percent, and goods and services at 1.1 percent. Meanwhile, the health group observed a slight decline of 0.2 percent, followed by clothing and footwear at 0.7 percent, communications at 1.0 percent, tobacco at 1.1 percent, and furniture at 1.6 percent, while the transport group recorded the largest drop at 2.0 percent.
Read more: GCC inflation rate hits 1.7 percent by December 2024 on rising housing prices: GCC-Stat
Relative stability amid global fluctuations
According to recent data, price levels in the GCC underwent moderate fluctuations between 2020 and 2024. The region’s inflation rate stood at 1.7 percent in 2020, rose to 2.4 percent in 2021, and peaked at 3.1 percent in 2022. It then eased to 2.2 percent in 2023, continuing its downward trend to settle at 1.7 percent in 2024.
These figures reflect the effectiveness of the economic policies implemented by GCC countries in managing inflationary pressures, particularly following the significant increase observed in 2022. They also signify a period of relative stability in the region compared to the fluctuations experienced in global markets.
In 2024, the GCC inflation rate remained notably lower than that of several major trading partners, highlighting the region’s economic resilience. Inflation rates were recorded at 4.4 percent in Brazil, 3.8 percent in India, 3.3 percent in the United Kingdom, 2.9 percent in the United States, and 2.7 percent in Japan. Meanwhile, South Korea and Germany reported rates of 2.3 percent, with France recording 2.0 percent. The inflation rates in both China and Italy were lower than that of the GCC, at 0.2 percent and 1.0 percent respectively, while the rate in the European Union stood at 2.6 percent.
