Kingdom records lowest inflation in the Gulf
TDT | Manama
Email : editor@newsofbahrain.com
Bahrain posted one of the Gulf’s lowest inflation rates in 2025 at 0.3%, KAMCO Invest said in its October update. The consumer price index held at 101.7 year-onyear and rose 0.5% on the month. Five of twelve CPI groups fell, led by clothing, healthcare and recreation, while education and food edged higher.
Across the Gulf Cooperation Council (GCC), inflation stayed subdued despite global supply disruptions. KAMCO Invest cited strong fiscal policy, higher oil output and currency pegs to the US dollar. Using IMF data, it put average GCC inflation at 1.7% for 2025 and 2% for 2026.
Saudi Arabia recorded 2.2%, the UAE 2.9%, Oman 0.9% and Qatar 0.1%. Since April, OPEC+ members have lifted production by about 2.9 million barrels per day, easing energy and transport costs. The US Federal Reserve cut rates by 25 basis points in October, with most Gulf central banks following to support growth. Globally, US inflation hit 3% in September, yet Gulf readings stayed mild, helped by steady energy markets and a 20% drop in global food prices from 2022 peaks, according to the UN Food and Agriculture Organization.
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