Cost of living on the rise in Qatar
Qatar’s cost of living, based on consumer price index (CPI), rose 2% year-on-year (y-o-y) in September mainly on costlier food. The CPI for September 2012 was up 0.40% from August 2012, figures released by the Qatar Statistics Authority (QSA) revealed.
According to the International Monetary Fund, Qatar’s average inflation is expected to be 4%-5% in the medium term. Food, beverages and tobacco, which has a weight of 13.20% in the CPI basket, saw its group index rise 1.80% month-on-month (m-o-m) in September and it was up 3.60% y-o-y.
The food price inflation came after the price freeze, in view of Ramadan, was lifted. Furniture, textiles and home appliances, which has a weight of 8.20% in the CPI basket, saw its group index surge 3.3% y-o-y. It was up 0.20% from August. Entertainment, recreation and culture, which carry a weight of 10.90% in the CPI basket, saw its group index rise 1.5% y-o-y in September while it was down 0.4% from the previous month.
Miscellaneous goods and services, which carry 7.20% weight in the CPI basket, saw its group become costlier by 4.10% y-o-y in August. It gained 1.70% from the previous month. Garments and footwear, which carry 5.80% in the CPI basket, saw their price spurt 1.60% y-o-y in September and it was up 0.30% from August 2012.
Transport and Communication, which has a weight of 20.50% in the CPI basket, witnessed its index gain 3.1% y-o-y in September whereas the index fell 1.20% from the previous month’s level, which was mainly due to the drop in the air ticket fares. Medical care and medical services group, which has 2% weight, reported a 0.30% increase y-o-y in September and was flat compared to the previous month.
However, rent, fuel and energy group, which is the most influential and carries the maximum weight of 32.20% in the CPI basket, saw its index gain marginally by 0.10% m-o-m in September and the index rose 1% compared to the previous year’s level. “After eliminating the effect of rent, the overall index shows an increase of 0.20% compared to the CPI of August 2012 and an increase of 2.90% when compared to September 2011,” the QSA spokesman said.