GCC Inflation Drops to 1.7% in 2024
Inflation in the Gulf Cooperation Council (GCC) countries dropped to 1.7% in 2024, down from 2.2% in 2023, according to official figures.
Price Changes by Category
The report from GCC-Stat showed that the biggest price increase was in housing, which went up by 5.7%. Prices in restaurants, hotels, and entertainment rose by 1.8%. Education costs went up by 1.7%, food and drinks by 1.5%, and other goods and services by 1.1%.
Some prices went down. Health costs fell by 0.2%, clothing and shoes by 0.7%, communication by 1%, tobacco by 1.1%, furniture by 1.6%, and transport costs dropped the most, by 2%.
Inflation Trends Over the Years
Between 2020 and 2024, inflation in the GCC moved up and down. It was 1.7% in 2020, rose to 2.4% in 2021, and peaked at 3.1% in 2022. Since then, it has been going down.
The report said this shows the success of the region’s economic policies in keeping inflation under control. It also said the region is more stable compared to the global markets.
GCC vs Other Countries
In 2024, inflation was higher in many countries compared to the GCC. It was 4.4% in Brazil, 3.8% in India, 3.3% in the UK, 2.9% in the US, and 2.7% in Japan. But inflation was lower in China (0.2%) and Italy (1%).
Future Outlook
In December, GCC-Stat predicted inflation will stay stable: 2.4% in 2024, 2.6% in 2025, and 2.1% in 2026. This is helped by global efforts to control inflation.
Interest Rates
In June, GCC central banks kept interest rates the same, following the US Federal Reserve’s decision to hold rates steady. This helps maintain the value of Gulf currencies, which are tied to the US dollar.
Economic Growth
GCC-Stat also said the region’s economy is expected to grow by 4.5% in 2025 and 3.5% in 2026. Growth will come from strong transport, tourism, and infrastructure projects, supported by increased government spending.
Published: 1st July 2025
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