Qatar inflation remaining steady, official figures show

Jeddah - Yasmine El Tohamy - RIYADH: Qatar’s annual and monthly inflation rate remained steady in June despite a significant increase in key groups, official data revealed. 

The National Planning Council has released the Consumer Price Index for June, which reached 107.52 points, down from 107.59 recorded in May. 

This marks a 0.98 percent year-on-year rise from June 2023, despite a minor month-on-month decline of 0.07 percent from May of this year. 

Qatar’s stabilization of inflation aligns with its plans for economic growth, as it commenced its Third National Development Strategy earlier in 2024. 

The nation aims to accelerate economic development at an average annual rate of 4 percent until 2030 by expanding gas production, supporting sectors contributing to financial diversification, and creating specialized economic clusters. 

The year-on-year CPI increase is primarily attributed to significant price hikes in five key groups. 

Recreation and culture surged by 14.09 percent, while education rose by 3.42 percent. 

Additional increments were observed in miscellaneous goods and services, with a 2.83 increase, clothing and footwear with 0.98 percent, and food and beverages with 0.09 percent. 

Price levels fell in several categories – communication decreased by 4.62 percent, housing, water, electricity, and other fuel by 3.10 percent, and restaurants and hotels by 1.79 percent.

Health was down by 1.77 percent, furniture and household equipment by 1.71 percent, and transport by 0.32 percent. The tobacco category recorded no change. 

A month-on-month comparison of the main CPI components for June reveals mixed trends. 

Five groups saw price decreases, with food and beverages by 3.12 percent, clothing and footwear by 0.86 percent, transport by 0.61 percent, housing, water, electricity, and other fuel by 0.47 percent, and miscellaneous goods and services by 0.18 percent. 

Prices increased in communication by 9.29 percent, recreation and culture by 1.24 percent, restaurants and hotels by 0.13 percent, and furniture and household equipment by 0.07 percent. 

The education category experienced a slight increase of 0.04 percent, while tobacco and health remained unchanged from the previous month’s levels. 

The NPC also revealed Qatar’s Producer Price Index for the industrial sector for June.

The PPI consists of four main industry sectors – mining, which accounts for 82.46 percent, manufacturing at 15.85 percent, electricity at 1.16 percent, and water, which comprises 0.53 percent. 

June’s PPI is estimated at 115.73 points, showing an increase of 0.46 percent compared to May. On a year-on-year basis, the PPI increased by 6.31 percent.

In the mining and quarrying sector, the PPI for June went up by 0.67 percent compared to the previous month, primarily due to a price increase in crude petroleum and natural gas by 0.68 percent, with no change in other mining and quarrying. 

On an annual basis the PPI for mining and quarrying rose by 6.61 percent, driven by a 6.63 percent increase in crude petroleum and natural gas, while other mining and quarrying saw a slight decrease of 0.02 percent. 

The manufacturing sector recorded a decrease of 0.42 percent in June compared to the previous month. 

This decline resulted from falling prices in five groups and rising prices in three others. 

Price decreases were noted in cement and other non-metallic mineral products by 3.81 percent, basic metals by 2.24 percent, food products by 0.62 percent, as well as chemicals and chemical products by 0.55 percent, and refined petroleum goods by 0.43 percent. 

Price increases were seen in rubber and plastics products by 19.49 percent, beverages by 0.90 percent, and printing and reproduction of recorded media by 0.16 percent. 

Compared to the same month in 2023, the manufacturing PPI for June showed an increase of 5.02 percent. 

The major groups contributing to this price increase were rubber and plastics products by 18.70 percent, refined petroleum products by 12.14 percent, and chemicals and chemical products by 4.21 percent, as well as food products by 3.45 percent, cement and other non-metallic mineral products by 2.97 percent, and beverages by 2.40 percent. 

Decreases were observed in basic metals by 2.19 percent and printing and reproduction of recorded media by 0.33 percent. 

The PPI for electricity, gas, steam, and air conditioning supply fell by 5.84 percent compared to May. 

On a year-on-year basis, this category saw a decrease of 0.18 percent in June.

In the water supply sector, the PPI increased by 3.33 percent compared to May and showed a year-on-year increase of 6.47 percent.