RIYADH: Lower energy costs will help inflation ease to 12.2 percent this year and 10.3 percent in 2026 across the Middle East and North Africa, according to the International Monetary Fund.
In its October 2025 Regional Economic Outlook, the IMF said inflation is slowing from 14.2 percent in 2024, with fiscal tightening and subsidy reforms also having an impact.
Inflation in Gulf economies remains among the lowest globally, reflecting stable exchange rates and prudent fiscal policies, with the Gulf Cooperation Council’s average rate projected at 1.7 percent in 2025 and 2 percent in 2026 — underscoring the bloc’s resilience to global price pressures.
Saudi Arabia is expected to maintain a stable inflation rate, with the IMF forecasting its Consumer Price Index at 2.1 percent in 2025 and 2 percent in 2026.
Jihad Azour, director of the IMF’s Middle East and Central Asia Department, said: “Inflation trends vary across the region, but in most economies, inflation is moderating or declining, supported by tight monetary policy and lower food and energy prices.”
