The annual inflation rate across Gulf Cooperation Council (GCC) countries climbed by 1.7% in December 2024, according to new data released by GCC-Stat. The rise was largely fueled by higher housing and service prices.
Housing costs surged by 5.9%, making it the biggest contributor to the increase. Prices of goods and services also rose by 2.8%, while the culture and entertainment category went up by 1.8%. Food and beverages, along with education, each saw a 1.2% increase. Restaurants and hotels recorded a 1.1% uptick, and health costs edged slightly higher at 0.1%.
The upward pressure was partially offset by notable declines in other categories. Transportation prices dropped by 2.7%, furniture and household equipment by 1.7%, tobacco by 1.1%, communications by 0.9%, and clothing and footwear by 0.2%.
Despite the increase, the GCC’s inflation rate remained below that of the European Union, which stood at 2.7%, and was also lower than many of the region’s key import partners. Brazil recorded the highest annual inflation in December at 4.8%, followed by Japan (3.6%), India and the UK (3.5%), and the US (2.9%).
The comparatively moderate inflation in the GCC reflects a mix of domestic cost trends and global economic pressures, particularly in sectors tied to housing and consumer services.
News Source: Emirates News Agency
