Qatar's CPI inflation falls 0.24% year-on-year
December 16 2018 09:20 PM
Qatar

Qatar's consumer price index (CPI) inflation declined 0.24% year-on-year despite higher expenses towards education, transport, clothing, health and furniture, according to the official data.

The CPI-based cost of living was up a marginal 0.07% on a monthly basis on increased expenses towards recreation, restaurant and clothing, 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.

Education, with 5.75% weightage, saw its index expand 9.2% year-on-year this November and was unchanged month-on-month.

Transport, which has 14.59% weightage, saw its group index vault 5.35% year-on-year but treaded a flat path 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 1.79% weightage, soared 3.37% on a yearly basis and it was unchanged on a monthly basis.

The index of clothing and footwear, which carry 5.11% weight, increased 3.4% year-on-year in November 2018 and 0.43% month-on-month.

Furniture and household equipment, which have 7.7% weightage in the CPI basket, saw its index grow 1.67% compared with November 2017; while it was flat month-on-month.

The index of Restaurants and Hotels, which have 6.08% weight, was up 0.47% on a yearly basis and 0.26% on a monthly basis in November 2018.

However, Communication, which carries 5.87% weight, saw its group index plunge 11.31% year-on-year this November but unchanged month-on-month.

Recreation and Culture, which have 12.68% weightage in the CPI basket, saw a 5.06% decline on a yearly basis but saw 0.79% rise against October this year.

The index of Housing, water, electricity and other fuels – with a weight of 21.89% in the CPI basket – plummeted 2.56% year-on-year in November 2018 but was up 0.02% on a monthly basis.

The CPI of November 2018, excluding “housing, water, electricity, gas and other fuels” showed an increase of 0.3% and 0.61% on monthly and yearly basis respectively. Food and beverages, which has a weight of 12.58% in the CPI basket, witnessed 2.38% shrinkage in its group index on a yearly basis in November this year and 0.62% on a monthly basis.

Miscellaneous Goods and Services, which have 5.69% weightage, saw its index fall 0.06% year-on-year but were up 0.16% on a monthly basis in November 2018. Tobacco, which has 0.27% weight, stood unchanged both annually and monthly in November 2018 but expected to expand in the future with government planning to increase tax on it.



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