Qatar’s inflation is set to rise to 1.6% in 2025 from 1.1% in 2024. This forecast comes from a recent economic report. The study shows that inflation in Qatar remains mild as businesses focus on increasing sales rather than raising prices.
The report also highlights that inflation in January was low. Many firms absorbed higher costs instead of passing them to customers. This trend helps keep overall inflation under control. Experts expect the Qatar Central Bank to slow down policy easing due to global economic trends.
Another major report predicts that Qatar’s inflation will stay close to 2% in the long run. The country’s inflation dropped from 5% in 2022 to 3% in 2023. By late 2024, inflation had further decreased to 1.2%, mainly due to lower rent and recreation costs.
Experts believe that inflation will remain steady in the Gulf region. The report estimates that overall inflation in GCC countries will be around 2.3% in 2025. In Qatar, inflation is currently under 1%, similar to Bahrain and Oman. Meanwhile, Saudi Arabia’s inflation averaged 1.7% in 2024, mostly due to rising housing rents.
Housing costs are also a key factor in Dubai, where inflation stands at 3%. However, other emirates have lower inflation rates, balancing the numbers. Kuwait had the highest inflation in the region at 2.9% in 2024. Bahrain’s inflation stayed low at 0.9% in 2024 but may rise to 2.8% this year, potentially slowing consumer spending.
Inflation in Qatar remains steady due to controlled costs in key sectors. Experts note that lending growth may slow down soon. However, non-energy businesses will still find support. The report predicts that the US Federal Reserve will keep interest rates steady until December. It expects a small rate cut of 25 basis points at the end of the year.
