Increased expenses towards transportation and clothing pushed up Qatar’s cost of living, based on consumer price index (CPI), month-on-month in March this year, according to official estimates.

The CPI inflation rose 0.9% year-on-year, mainly on costlier transport, education, furniture and miscellaneous goods and services, said the figures released by the Ministry of Development Planning and Statistics.

The International Monetary Fund recently said during 2017-18, subsidy cuts, increase in public fees, a moderate recovery in global commodity prices and the implementation of a value added tax are expected to moderate Qatar’s inflation over the medium term.

The transport sector, which has a 14.59% weight, saw its group index expand 1.5% this March against February 2017 level, but a huge 8% surge on a yearly basis. The sector has the direct linkage to the dismantling of the administered prices in petrol and diesel.

The recreation and culture group, which has a 12.68% weight in the CPI basket, saw its index gain 0.7% month-on-month in March this year, but reported a 1.6% rise on a yearly basis.

The clothing and footwear segment, which carries a 5.11% weight, witnessed a 0.4% rise on a monthly basis and 0.2% year-on-year in March.

The index of restaurants and hotels, which has a 6.08% weight, rose 0.1% month-on-month this March, while it fell 2.8% on a yearly basis.

However, food and beverages, which has a weight of 12.58% in the CPI basket, saw its group index decline 0.6% in March this year against the previous month's level; it was down 0.4% on a yearly basis.

The housing, water, electricity and other fuels group, with a weight of 21.89% in the CPI basket, registered a 0.4% month-on-month dip in its index in March this year, and 1% year-on-year.

The CPI of January 2017, excluding “housing, water, electricity, gas and other fuels” showed an increase of 1.5% on a yearly basis and 0.4% on a monthly basis.

The miscellaneous goods and services, which has a 5.69% weight, witnessed its index unchanged month-on-month this March, but it rose 1.4% year-on-year.

The furniture and household equipment sector, which has a 7.7% weightage in the CPI basket, treaded a flat path in March against the previous month's level, but had saw a 1.4% increase year-on-year.

Although education, with a 5.75% weightage, saw its index unchanged in March 2017 compared February, but overall its index reported a 3% increase on a yearly basis.

The health group, which carries a 1.79% weightage, saw its index tread a flat course month-month in March this year but it showed a yearly 0.2% decline.

Communication, which carries a 5.87% weight, also saw its group index stay unchanged in March 2017 on a monthly basis, while it was down 0.1% year-on-year.

The tobacco group, which has a 0.27% weight, stood unchanged both annually and monthly in March this year; even as there are reports that Gulf countries, including Qatar, may impose heavy taxes on tobacco and soft drinks.

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