MUSCAT: The housing sector contributed the largest share to overall inflation in the GCC, according to a recent report from the GCC Statistics Centre.
The sector witnessed the highest inflation rate among all consumer categories in the region with a 5.7% increase in 2024, marking a 90.1% contribution to the overall inflation in the region.
In 2024, Saudi Arabia recorded the highest housing inflation at 8.8%, followed by the UAE at 3.3%. Kuwait saw a 1.2% increase, Oman 0.3%, and Bahrain 0.2%. Qatar, meanwhile, recorded a deflation rate of -3.3%.
Other sectors experienced increases as well. Inflation in the restaurant and hospitality sector rose by 1.8%, while the culture and entertainment sector registered a similar increase of 1.8%. Education increased by 1.7%, food and beverages by 1.5%, and goods and services by 1.1%.
Several categories recorded deflation, including health (-0.2%), clothing and footwear (-0.7%), communications (-1.0%), tobacco (-1.1%), furniture (-1.6%), and transport (-2.0%).
In 2024, countries of the GCC recorded an average inflation rate of 1.7%. Kuwait registered the highest rate at 2.9%, followed by Saudi Arabia and the UAE at 1.7% each, Qatar at 1.3%, Bahrain at 0.9%, and Oman at 0.6%.
According to the report, the inflation rate in the GCC stood at 1.7% in 2020, then rose to 2.4% in 2021, reaching its peak in 2022 at 3.1%. The rate then declined to 2.2% in 2023, before returning to the same level of 1.7% in 2024.
The report notes that the return to the pre-2021 rates reflects “the success of the economic policies adopted by GCC countries in containing inflationary pressures.” In addition, it points to a “state of relative stability in the region compared to the fluctuations seen in global markets, along with a decline in global inflation and the stabilization of food and energy prices during 2024.”
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