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The prices of goods and consumer services in the Gulf states rose by 1.4% in July 2024, compared to a year earlier, according to data released by the GCC Statistical Centre on Wednesday.
The latest inflation is driven by the housing category, which posted a 5.8% growth, while restaurants and hotels registered a 2% increase and the culture and entertainment group posted a 1.7% uptick.
The food and beverage category witnessed a 1% increase, while prices in other categories, including health, clothing and footwear, tobacco, communications, transportation, furniture and household equipment registered marginal declines.
Inflationary pressures have eased in the region this year, thanks to a strong US dollar, subdued import prices and continued subsidy policies, Kamco Invest had said in a previous report.
The International Monetary Fund (IMF) had forecast the GCC inflation to average 2.3% this year, down from 2.6% in 2023. Inflation has mostly returned to pre-pandemic levels following a series of interest rate increases, according to a PwC report early this year.
Last month, the US Federal Reserve cut the interest rate for the first time since 2020 amid slowing inflation. Most of the GCC central banks followed the Fed move and reduced interest rates.
(Writing by Cleofe Maceda; editing by Seban Scaria)
