RIYADH: Inflation across the Gulf Cooperation Council remained subdued in June and July despite oil and gas price fluctuations linked to the ongoing US-Iran conflict, according to Kamco Invest.
In its latest report, the Kuwait-based investment firm said the geopolitical situation in the Middle East is expected to sustain upward pressure on global inflation in the short term, while intermittent hostilities between the US and Iran are poised to lift oil prices, dampen global economic growth and drive up interest rates.
The report’s assessment is broadly in line with projections from Oxford Economics in June, which forecast GCC inflation at 2.6 percent in 2026, easing to 2.1 percent in 2027 as temporary supply-side pressures dissipate.
“In the GCC, inflation remained subdued in June and July-2026, despite oil and gas price fluctuations prompted by the ongoing US-Iran conflict. In Saudi Arabia, annual inflation remained under the 2 percent central bank benchmark, increasing by 1.8 percent year on year in July,” said Kamco Invest.
Wider regional angle
