Qatar’s inflation fell to 1.2% in January
ZAWYA DOW JONES
ANNUAL inflation in Qatar fell sharply in January to 1.2 percent, down from 2.1 percent in December last year helped by cheaper rents, fuel and transport costs, official data showed on Monday.
Rents, fuel and energy, comprising 32.2 percent of the consumer price index (CPI) slid 0.5 percent in January month-onmonth and transport and communication costs, making up around a fifth of the overall basket, fell 0.2 percent, according to data from the Qatar Statistics Authority.
A comparison of the CPI of January, 2012 with the CPI of December, 2011, shows that although at the overall level, the index remained stable, at the major group level, increases in some groups were offset by drops in others.
The 2.3 percent increase in ‘miscellaneous goods and services’ due to the rises recorded in the acquisition of valuables, and the 1.6 percent rise in ‘garments and footwear’ were offset by drops in all the other groups.
The indices for food, rent and medical care dropped by 0.5 percent, and that for furniture by 0.4 percent, whilst in the remaining groups, the drops ranged between 0.1 percent to 0.2 percent .
A year-on-year analysis, comparing the CPI of January 2012 with that of January 2011, shows increases ranging between 2.3 percent and 6.8 percent in all the major groups, with the exception of ‘rent, fuel and energy’, which registered a drop of 5.9 percent.
After eliminating the effect of rent, the overall index shows an increase of 0.2 percent compared to the CPI of December, 2011, and an increase of 4 percent when compared to the month of January, 2011.
Ibrahim al Ibrahim, economic adviser to the Emir His Highness Sheikh Hamad bin Khalifa al Thani, had predicted last week that inflation would average about 3 percent to 3.5 percent this year but the IMF had warned the figure could be about 4 percent.