Manama:Data from the Statistical Centre for the Cooperation Council for the Arab Countries of the Gulf (GCC-Stat) shows that headline inflation in the GCC countries reached 2.2 percent in July 2026. This represents a slight increase from 2.1 percent in June 2026, indicating a rise of 0.1 percentage points. The inflation rate remains moderate and below the averages of several major economic blocs.
According to Bahrain News Agency, the largest contributor to annual inflation among the main groups was Housing, Water, Electricity, and Gas, accounting for 0.82 percentage points. This was followed by Food and Non-Alcoholic Beverages at 0.51 percentage points and Transport at 0.31 percentage points. Other contributors included Miscellaneous Goods and Services and Restaurants and Hotels, each adding 0.16 percentage points, while Recreation and Culture contributed 0.09 percentage points.
In terms of annual price changes by main group, Housing, Water, Electricity, and Gas saw the highest increase at 3.3 percent compared to the same month in the previous year. Food and Non-Alcoholic Beverages and Miscellaneous Goods and Services followed with increases of 2.8 percent each. Prices of Recreation and Culture rose by 2.7 percent, while Transport prices increased by 2.4 percent.
On a monthly basis, the Consumer Price Index (CPI) rose by 0.3 percent in July 2026 compared with June 2026. Recreation and Culture recorded the largest monthly increase at 2.0 percent, with Housing, Water, Electricity, and Gas following at 0.6 percent.
In international comparisons, the GCC's inflation rate of 2.2 percent in July 2026 was below averages for benchmark economic blocs, such as 4.1 percent for the OECD total and 3.9 percent for the G20. Among major economies from which the GCC imports, India had the highest inflation rate at 4.6 percent, while France and Japan had lower rates at 2.1 percent and 1.9 percent, respectively.