Qatar's consumer price index (CPI) inflation declined 0.25% year-on-year in October despite higher expenses towards education, transport, health, clothing and furniture, according to the official data.
The CPI-based cost of living was up a marginal 0.07% on a monthly basis mainly owing to costlier food and beverage, communication and restaurants, the Ministry of Development Planning and Statistics data suggest.
Highlighting that headline inflation remains subdued; the International Monetary Fund (IMF), after its officials concluded their visit to Qatar, said the proposed restructuring in the fiscal space, including taxation, may slightly lift price levels in the future.
The IMF, in its latest Article IV consultation with Qatar, viewed that inflation is expected to peak at 3.9% in 2018 before easing to 2.2% in the medium term.
The education segment, with a 5.75% weight, saw its index expand 9.73% year-on-year in October and was unchanged month-on-month.
Transport, which has a 14.59% weight, saw its group index vault 5.9% year-on-year but was down 0.07% on a monthly basis. The sector has the direct linkage to the dismantling of administered prices in petrol and diesel, which have witnessed sustained increase in the recent past as part of lessening the subsidies.
The index of health, which carries a 1.79% weight, soared 3.38% on a yearly basis and it was up by a marginal 0.1% on a monthly basis.
The index of clothing and footwear, which carries 5.11% weight, increased 3.04% year-on-year and 0.76% on a monthly basis.
Furniture and household equipment, which has a 7.7% weight in the CPI basket, saw its index grow 1.77% compared with October 2017 and 0.17% month-on-month.
The index of restaurants and hotels, which has a 6.08% weight, was up 0.25% on a yearly basis and 0.52% on a monthly basis in October 2018.
However, communication, which carries 5.87% weight, saw its group index plunge 11.31% year-on-year this October but rose 0.62% month-on-month.
Recreation and culture, which has a 12.68% weight in the CPI basket, saw a 5.15% decline on a yearly basis and 0.58% against September this year.
The index of housing, water, electricity and other fuels – with a weight of 21.89% in the CPI basket – plummeted 2.97% year-on-year in October 2018 and 0.43% on a monthly basis.
The CPI of October 2018, excluding “housing, water, electricity, gas and other fuels” showed an increase of 0.22% and 0.53% on monthly and yearly basis respectively.
Food and beverages, which has a weight of 12.58% in the CPI basket, witnessed a 2.3% shrinkage in its group index on a yearly basis, although it shot up 1.09% on a monthly basis.
Miscellaneous goods and services, which has a 5.69% weightage, saw its index fall 0.18% year-on-year but were up 0.25% on a monthly basis in October this year.
Tobacco, which has 0.27% weight, stood unchanged both annually and monthly in October 2018.
