RIYADH: Despite changes in oil and gas prices related to the current US-Iran confrontation, inflation throughout the Gulf Cooperation Council remained low in June and July, according to Kamco Invest. The Kuwait-based investment firm stated in its most recent report that while intermittent hostilities between the US and Iran are likely to raise oil prices, slow global economic growth, and raise interest rates, the geopolitical situation in the Middle East is expected to sustain upward pressure on global inflation in the short term.
The report’s analysis is mostly consistent with Oxford Economics’ June forecasts, which put GCC inflation at 2.6 percent in 2026 and 2.1 percent in 2027 as short-term supply-side pressures abate. Despite changes in oil and gas prices brought on by the ongoing US-Iran confrontation, inflation in the GCC remained low in June and July of 2026. According to Kamco Invest, annual inflation in Saudi Arabia increased by 1.8 percent year over year in July while staying below the 2 percent central bank guideline.
Oman has the highest inflation rate among GCC nations in July, at 3.2 percent year over year. The primary motivators were transportation, food, and non-alcoholic drinks. The overall CPI ended June at 103.7 points, indicating a 2.3 percent year-over-year increase in Bahrain’s inflation rate. Month over month, the index increased by 0.9 per cent.
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