Qatar is expected to record the lowest consumer price index (CPI) increase in 2025 among GCC and Arab nations, according to Kamco Invest.

The economic research firm projects Qatar’s inflation will average 1.4% this year, below the GCC’s 1.9% average and significantly lower than the Arab world’s 8.5%. Within the GCC, inflation is expected to reach 1.8% in Bahrain, 2.4% in Kuwait, 1.5% in Oman, 1.9% in Saudi Arabia, and 2.1% in the UAE. This trend follows 2024 estimates, where Qatar’s inflation was pegged at 1%, compared to a 1.8% GCC average and 11.9% across the Arab world.

The International Monetary Fund (IMF), in its latest Article IV consultation report, forecasts that Qatar’s inflation will gradually rise to around 2% over the medium term, up from 1% in 2024.

GCC countries have largely experienced subdued inflation in 2024, a stark contrast to other regions struggling with higher prices. The World Bank attributes the GCC’s 2.1% average inflation last year to subsidies, fuel price caps, and currency pegs, though inflationary pressures remain in sectors such as housing.

On a monthly basis, Qatar’s CPI climbed 0.87% in December, largely due to an 8.8% surge in recreation and culture prices and a 1.5% rise in restaurant and hotel costs.