Qatar's inflation drops 1.15% as key costs fall

17/03/2025 10:51 AST

Qatar's inflation eased by 1.15 percent year on year in January, with the consumer price index settling at 107.45 points, driven by declines in food, housing, and transport costs, official figures showed.

According to the National Planning Council's latest report, the monthly CPI also dropped by 2.53 percent, primarily due to a decline in housing, water, electricity, and other fuels - which fell by 2.53 percent from December.

The slide comes as Qatar is projected to record the lowest inflation in the Gulf Cooperation Council region this year, averaging 1.4 percent - below the GCC's 1.9 percent and the wider Arab region's 8.5 percent, according to Kamco Invest.

The International Monetary Fund expects Qatar's inflation to stabilize around 2 percent over the medium term, supported by LNG expansion, public investment, and a strengthening tourism sector, according to a release in February.

The National Planning Council's report stated: "Reviewing the main changes in the CPI for the month of January 2025 compared with the previous month, findings show five categories decreased, six categories increased, and stability in one category."

Food and beverage prices recorded a 2.75 percent monthly drop, while recreation and culture saw the sharpest decline at 14.87 percent. Clothing and footwear prices fell by 1.13 percent, and furniture and household equipment dipped 0.77 percent. The restaurants and hotels sector also saw a slight decrease of 0.55 percent.

Conversely, several categories recorded price increases including miscellaneous goods and services which rose by 1.93 percent, health by 0.91 percent, and transport by 0.61 percent.

Housing, water, electricity, and other fuels saw a slight uptick of 0.11 percent, while communication and education prices remained relatively stable, with marginal increases of 0.09 percent and 0.02 percent, respectively. Tobacco prices remained unchanged.

Year-on-year figures showed notable shifts across key sectors, with the annual CPI declining by 1.15 percent.

The drop was mainly driven by a 5.44 percent decrease in food and beverage prices, while housing, water, electricity, and other fuels fell by 4.67 percent.

Recreation and culture recorded a decline of 4.29 percent, followed by restaurants and hotels, which dropped by 1.82 percent.

Furniture and household equipment fell by 1.73 percent, while transport costs were down by 1.01 percent.

At the same time, miscellaneous goods and services surged 7.92 percent, communication saw a sharp increase of 18.68 percent, and clothing and footwear rose 1.91 percent.

Education costs climbed 1.70 percent, while health recorded a slight increase of 0.04 percent.

The CPI excluding housing, water, electricity, and other fuels stood at 111.76 points in January, reflecting a monthly decline of 3.09 percent and an annual drop of 1.80 percent.

Despite the minor downward adjustments across multiple sectors, the council emphasized that consumer prices remain stable, with inflation largely contained within expected levels.

Arab News