GCC inflation rises 1.4%, led by surging home prices

Posted on October 4, 2024   |  

In July 2024, prices for goods and services in Gulf states went up by 1.4% compared to last year.

Housing costs saw the biggest increase at 5.8%, while restaurant and hotel prices rose by 2%, and the culture and entertainment sector grew by 1.7%.

Food and beverage prices climbed by 1%, but other areas like health, clothing, footwear, tobacco, transportation, and household items saw small price drops.

The IMF predicted that inflation in the GCC would average 2.3% in 2024, lower than 2.6% in 2023.

Inflation has mostly returned to pre-pandemic levels due to interest rate hikes.

Housing costs continue to be the main driver of inflation, despite overall easing in other sectors.