RIYADH: Gulf Cooperation Council inflation rates remained stable throughout the second quarter of 2025 despite heightened geopolitical instability, a new report showed.
According to the latest analysis by Kuwait-based non-banking firm Kamco Invest, Dubai recorded a monthly inflation rate of 2.4 percent in June, unchanged from May, followed by Saudi Arabia and Kuwait, both registering inflation rates of 2.3 percent in June.
This aligns with recently released data from the Statistical Center for the GCC, which shows that the region’s average inflation rate fell to 1.7 percent in 2024, down from 2.2 percent in 2023.
It also supports the fact that the GCC economies are expected to grow 4.4 percent in 2025, up from an earlier forecast of 4 percent, as rising oil output and resilient non-oil sector activity offset global trade headwinds, according to a recent economic update by the Institute of Chartered Accountants in England and Wales prepared with Oxford Economics.
“The war in the Middle East affected crude oil prices that surged to almost $79 per barrel. But quietly receded in the subsequent weeks as OPEC+ accelerated the output hikes aiming to unwind the full 2.2 mb/d by September-2025,” Kamco said.
