GCC inflation edges up to 2.2% in July

05/11/2026 02:58 AST

Annual inflation across the Gulf Cooperation Council rose to 2.2 percent in July from 2.1 percent in June, remaining moderate and below rates recorded by several major economic blocs, the GCC Statistical Center said on Wednesday. Housing, water, electricity and gas were the largest contributors to annual inflation, adding 0.82 percentage points, followed by food and non-alcoholic beverages at 0.51 percentage points and transport at 0.31 percentage points.

Miscellaneous goods and services and restaurants and hotels each contributed 0.16 percentage points, while culture and recreation added 0.09 percentage points and education contributed 0.05 percentage points. Insurance and financial services and communications each added 0.03 percentage points. Health and furniture and household equipment each contributed 0.01 percentage points. Tobacco and alcoholic beverages had a neutral effect, while clothing and footwear reduced overall inflation by 0.03 percentage points.

Housing and utilities recorded the largest annual price increase at 3.3 percent, followed by food and non-alcoholic beverages and miscellaneous goods and services, both at 2.8 percent. Prices rose 2.7 percent for culture and recreation, 2.4 percent for transport and 2.3 percent for restaurants and hotels. Education and insurance and financial services each recorded increases of 1.4 percent. Communications prices increased 0.6 percent, while tobacco and alcoholic beverages and health each rose 0.3 percent. Furniture and household equipment prices edged up 0.1 percent.

Clothing and footwear was the only main category to record an annual decline, with prices falling 0.7 percent. On a monthly basis, the GCC consumer price index increased 0.3 percent in July compared with June. Culture and recreation registered the largest increase at 2 percent, followed by housing and utilities at 0.6 percent, restaurants and hotels at 0.5 percent, transport at 0.3 percent and food and non-alcoholic beverages at 0.2 percent. Insurance and financial services and health prices each rose 0.1 percent, while tobacco and alcoholic beverages, communications and education remained unchanged.

Miscellaneous goods and services prices fell 0.9 percent month on month, while clothing and footwear and furniture and household equipment each declined 0.1 percent. In international comparisons, the center said GCC inflation remained below the averages of the major economic groupings covered by its report. Inflation stood at 4.1 percent across the Organization for Economic Cooperation and Development and 3.9 percent in the G20. The G7, European Union and eurozone each recorded inflation of 3 percent.

Among major economies supplying imports to GCC countries, India recorded inflation of 4.6 percent, followed by Brazil at 4.4 percent, the United States at 3.4 percent, the United Kingdom at 3.1 percent and Italy at 2.9 percent. South Korea and Germany each recorded 2.8 percent. The GCC rate was higher than those recorded in France at 2.1 percent, Japan at 1.9 percent and China at 0.5 percent, the center said. Established in 2011 and based in Oman, the GCC Statistical Center serves as the official source of regional data and statistics and supports cooperation among national statistical agencies and planning bodies.

KUNA