Muscat: The average inflation rate in the GCC countries stood at 1.7% in 2024, compared to 2.2% in 2023, according to the latest data released by GCC-Stat.

According to Oman News Agency, the data show a variation in the rates of change across the main groups, with the housing group recording the highest increase at 5.7%. This was followed by restaurants and hotels and culture and entertainment, both at 1.8%. The education sector saw a rise of 1.7%, food and beverages at 1.5%, and goods and services at 1.1%. The health group recorded a slight decline of 0.2%, closely followed by clothing and footwear at 0.7%, communications at 1.0%, tobacco at 1.1%, and furniture at 1.6%. The transport group registered the largest drop at 2.0%.

Price levels in the GCC experienced moderate fluctuations between 2020 and 2024. The region’s inflation rate stood at 1.7% in 2020, increased to 2.4% in 2021, and reached its peak at 3.1% in 2022. It then eased to 2.2% in 2023, continuing its downward trajectory to settle at 1.7% in 2024.

These figures reflect the success of the economic policies adopted by GCC countries in containing inflationary pressures, particularly following the increase in 2022. They also indicate a state of relative stability in the region compared to the fluctuations seen in global markets.

In 2024, the GCC inflation rate remained notably lower than that of several major trading partners, underscoring the region’s economic resilience. Inflation stood at 4.4% in Brazil, 3.8% in India, 3.3% in the United Kingdom, 2.9% in the United States, and 2.7% in Japan. Meanwhile, South Korea and Germany reported rates of 2.3%, with France recording 2.0%. The inflation rate in both China and Italy was lower than the GCC rate, recording 0.2% and 1.0% respectively, while the rate in the European Union stood at 2.6%.