Qatar’s CPI inflation holds at 3.3% y/y in March

By bne IntelliNews April 14, 2016

Qatar’s CPI inflation stood at 3.3% y/y in March, the same as the preceding month, on shrinking food and beverages prices and slower transport and housing price growth, data from the planning ministry showed on April 14. The CPI inflation will likely remain in the low single digits in H1, helping soften the impact of the government’s aggressive public spending that is sustaining inflationary pressures in the gas-rich country.

The core CPI, excluding housing, water, electricity, gas and other fuels group, however, edged up to 2.6% y/y in March from 2.5% y/y a month earlier on a zero m/m growth.

In monthly terms, the CPI inflation also flattened m/m, reversing a 0.6% m/m hike in February.

Food, tobacco and beverage prices (with a 13.2% weight in the index) fell 0.7% m/m in March on favourable seasonal factors that cut fresh produce and processed food costs. The annual component recoded 1.9% y/y deflation, deepening from a 1.3% annual contraction in February.

Housing prices (21.9% of the basket) grew a marginal 0.1% m/m in March reducing the annual increase to 5.4% from 5.7% y/y in February, on falling utilities costs. Rent charges however remain high amid strong expatriate demand for residential units.

Transport prices (15% of CPI) fell 0.6% m/m in March cutting the annual expansion to 1.5% from 2.1% y/y in February as the government liberalized fuel prices to cut spending.

Related Articles

Ankara and Tehran join wave of anger directed at Trump’s recognition of Jerusalem as Israel’s capital

US President Donald Trump's December 6 announcement that his administration has decided to unilaterally recognise Jerusalem as Israel's capital was described as “against international law” by ... more

Islamic State is finished declares Iran's President Rouhani

Iranian President Hassan Rouhani on November 21 declared the end of the so-called Islamic State militant and terrorist group following decisive battles in Iraq and Syria. Stating that he wished to ... more

Turkey the loser as Baghdad rewards Iran with control of Kurdish oil exports

Iran is taking control of oil exports from Iraqi Kurdistan's giant Kirkuk field with Baghdad authorising the move as a reward for the Iranians' help in quelling the Kurds' late September push for ... more

Dismiss