The newly introduced sanitation fee appears to have had no effect on Qatar’s consumer price index (CPI) as inflation based on CP fell both month-on-month and year-on-year respectively in February 2021, according to the Planning and Statistics Authority (PSA).
Qatar's core inflation otherwise saw a marginal jump on a monthly basis but declined on a yearly basis in the review period.
While the overall CPI inflation, was down 0.09% month-on-month this February; the core inflation (CPI excluding housing and utilities) grew by a marginal 0.02%, said the PSA figures.
From February, non-Qatari residents and establishments have to pay a sanitation fee that will be equivalent to 20% of the value of the monthly Qatar General Electricity and Water Corporation (Kahramaa) water bill.
On a yearly basis, the country's overall and core inflation shrank 1.27% and 0.23% respectively in February 2021.
The Washington-based the Institute of International Finance in its latest report forecasts Qatar’s inflation to be 0.9% in 2021.
The index of housing, water, electricity and other fuels – with a weight of 21.17% in the CPI basket – saw a 0.51% and 5.83% contraction on monthly and yearly basis this February.
The index of clothing and footwear, which has a 5.58% weight in the CPI basket, reported 1.07% and 8.87% shrinkage month-on-month and year-on-year in February 2021.
The index of transport, which has a 14.59% weight, increased 0.57% and 4.36% on monthly and yearly basis this February. The sector has the direct linkage to the dismantling of administered prices in petrol and diesel.
In February 2021, the retail price of super, premium gasoline and diesel saw a year-on-year 18%. 19% and 24% plunge respectively. On a monthly basis, the price of super was rose 11% and that of premium and diesel by 12% each.
In the case of furniture and household equipment, which has a 7.88% weight in the CPI basket, the index was down 0.07% month-on-month; even as it witnessed 2.73% increase on a yearly basis in February 2021.
Communication, which carries 5.23% weight, saw its group index grow 3.72% and 0.26% jump month-on-month and year-on-year respectively in February 2021.
Food and beverages, which has a weight of 13.45% in the CPI basket, witnessed a 0.53% jump year-on-year but was down by a marginal 0.05% on monthly basis in the review period.
The index of restaurants and hotels, which has a 6.61% weight, grew 3.13% year-on-year, whereas it was down 0.07% month-on-month this January.
Education, with a 5.78% weight, saw its index grew 3.91% on yearly basis; while it treaded a flat path month-on-month this February.
Miscellaneous goods and services, with a 5.65% weight, saw its index jump 2.29% year-on-year even as it declined 0.26% month-on-month this February.
The index of recreation and culture, which has 11.13% weight in the CPI basket, was seen plummeting 13.89% year-on-year; while it was unchanged in February this year.
The index of health, which carries 2.65% weight, declined 0.2% year-on-year but treaded a flat course on monthly basis in February 2021.
The tobacco index, which has a 0.28% weight, was unchanged both on a monthly and yearly basis in the review period.