Qatar’s CPI inflation soars 5.4% year-on-year in June

The increase in the country's general price level comes amidst an overall inflationary pressure in the global economy, which prompted the central banks to tighten their monetary policies, stoking fears of economic slowdown.Qatar's core inflation (excluding housing and utilities) rather followed a similar trend with it rising 5.45% year-on-year even as it was generally stable month-on-month in the review period.Both Finance Minister HE Ali bin Ahmed al-Kuwari and the Qatar Central Bank Governor HE Sheikh Bandar bin Mohamed bin Saoud al-Thani recently affirmed at the Qatar Economic Forum, powered by Bloomberg, that the country has enough tools to contain inflation.The index of recreation and culture, which has an 11.13% weight in the CPI basket, zoomed 36.45% and 2.26% on an annualised and monthly basis respectively in June this year.The index of housing, water, electricity and other fuels – with a weight of 21.17% in the CPI basket – saw 5.41% expansion on yearly basis but was unchanged month-on-month in June 2022.The food and beverages group, with a weight of 13.45% in the CPI basket, witnessed a 4.33% growth year-on-year, even as it fell 0.17% on monthly basis this June.The miscellaneous goods and services, with a 5.65% weight, saw its index jump 2.1% on an annualised basis but fell 1.39% month-on-month in the review period.The index of transport, which has a 14.59% weight, was seen rising 1.77% year-on-year but was unchanged on a monthly basis in June 2022.The sector has the direct linkage to the dismantling of the administered prices in petrol and diesel as part of the government measures to lower the subsidies.In June 2022, the retail price of super, premium gasoline and diesel witnessed a 13.51%, 5.41% and 17.14% surge year-on-year respectively. On a monthly basis, the price of super and diesel was flat; while that of premium declined 25%.In the case of furniture and household equipment, which has a 7.88% weight on the CPI basket, the index rose 1.37% year-on-year but was unchanged month-on-month in June this year.Communication, which carries a 5.23% weight, saw its group index jump 0.37% on a yearly basis. It was flat month-on-month respectively in the review period.Education, with a 5.78% weight, saw its index gain 0.22% on a yearly basis but was unchanged month-on-month in June 2022.However, the index of health, which has a 2.65% weight, was seen plummeting 3.14% on a yearly basis, although it was unchanged month-on-month in June 2022.The index of clothing and footwear, which has a 5.58% weight in the CPI basket, was seen declining 0.41% year-on-year but shot up 2.25% month-on-month this June.The restaurants and hotels group, with a 6.61% weight, saw its index shrink 0.4% and 0.26% year-on-year and month-on-month respectively this June.The tobacco index, which has a 0.28% weight, was unchanged on yearly and monthly basis in the review period.