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Qatar inflation up 3.1% on year in July on rent, furniture and garment

Qatar inflation up 3.1% on year in July on rent, furniture and garment

Qatar’s cost of living, based on consumer price index (CPI), rose 3.1% year-on-year (y-o-y) in July mainly on rising rents and costlier furniture and garments, according to official figures.

The CPI inflation was up 0.3% compared to the previous month, said the Ministry of Development Planning and Statistics, which released the figures yesterday.

The rent, fuel and energy group, which is the most influential and carries the maximum weight of 32.2% in the CPI basket, recorded an increase of 7.6% y-o-y in July 2014. The index was up 0.3% from the previous month’s level.

After eliminating the effect of rent, the overall index was up 0.2% from the previous month’s level and showed an increase of 1.4% compared to July 2013, said the ministry figures.

According to QNB projection, the country’s inflation is expected to rise to 3.8% in 2014 as higher infrastructure spending will result in a large inflow of workers, putting pressure on housing and prices.

Transport and communication, which has a weight of 20.5% in the CPI basket, saw its index surge 1.8% y-o-y in July 2014. It was up 0.5% from the previous month’s level.

Entertainment, recreation and culture group, which carries a weight of 10.90% in the CPI basket, saw its group index rise 0.8% compared to July 2013. The measure was up 0.7% compared to the previous month’s level.

Furniture, textiles and home appliances, which has a weight of 8.2% in the CPI basket, saw its group index surge 5.4% y-o-y in July this year; it was up 0.8% from April 2014.

Garments and footwear, which has a 5.8% weight in the CPI basket, saw its price spurt 2.2% y-o-y in July 2014 and 1.5% against the previous month’s level.

Medical care and medical services group, which has 2% weight, reported a 0.7% increase y-o-y in July 2014. The index was up 0.3% compared to the previous month’s level.

However, food, beverages and tobacco, which has a weight of 13.2% in the CPI basket, saw 0.8% fall from July 2013. The index had fallen 1% from the previous month’s level.

Miscellaneous goods and services, which carry a 7.2% weight in the CPI basket, saw its group become costlier by 1.3% y-o-y in July 2014. The index was down 0.3% from the previous month.