Economy

Qatar’s CPI inflation hits highest level since April

August 18, 2023, 11:24 AM

A restaurant in Qatar called Petra — A restaurant in Qatar – hotels and eating out bucked the trend of rising inflation, falling 4.65%

CPI up 3.11% year on year
Communication rose the most, at 15.85%
Prices for hotels, restaurants and clothing fell

Qatar’s consumer price index increased 3 percent year on year in July 2023, reaching its highest level since April.

The CPI inflation figure was up from the 2.5 percent reported in June, according to Qatar’s Planning and Statistics Authority (PSA).

Communication was one of eight groups to record a price increase, with a rise of almost 16 percent annually. It carries a 5.2 percent weight in the inflation calculation.

Also on the increase were recreation and culture (7 percent); housing, water, electricity and other fuel (4 percent); education (4 percent); transport (2 percent; and health by 0.3 percent.

Price levels in restaurants and hotels dropped by just under 5 percent, clothing and footwear (0.3 percent) and miscellaneous goods and services (0.08 percent).

The price of tobacco showed no change compared with July 2022.

Qatar’s CPI for July 2023 reached 106.87 points, showing a slight increase of 0.37 percent compared to the previous month.

This was led by a 3.5 percent increase in recreation and culture. At the other end of the spectrum, restaurants and hotels reported the greatest decrease at 3.5 percent.

The IMF had previously forecast that inflation in Qatar would average 2.1 percent in 2023-27.

Business conditions for Qatar’s non-oil private sector continued to improve in July.

Output, new orders, employment and purchasing all expanded, with Qatar’s latest Purchasing Managers’ Index reaching 54.0 in July, up slightly from 53.8 in June.

A score above 50 indicates growth, and the PMI remained well above the long-term trend of 52.3, according to new research by Qatar Financial Centre and ratings firm S&P Global.