The CPI–based monthly inflation was down 1.33 percent in April 2020 compared to March 2020. When compared to CPI of April 2019 (y-o-y), a decrease of 3.06 percent has been recorded in the general index (CPI) in April 2020, official data released yesterday showed. The decline in CPI can be attributed to fall in the prices of some key services sector group, including transport, telecom, healthcare, and hospitality sectors
. The Consumer Price Index (CPI), released by the Planning and Statistics Authority (PSA) for the month of April 2020, showed it reached to 96.19 point based on the 2018 prices. This release of CPI is the fourth issuance using the new base of 2018, calculated from the results of the household income and Expenditure survey 2017-2018. Looking at the relative importance of the base year 2018, it has been found that, the pattern of households did not change much during the previous five years, and that the relative importance between 2013 and 2018 was almost equal during the period, and no major change was observed on them, the groups of “Food and Beverages”, “Housing, Water, Electricity and other Fuel”, “Transport”, and “Recreation and Culture” still considered as the most important to consumer families.
An analysis (on m-o-m basis) of CPI for April 2020 compared with CPI, March 2020, shows that there are nine main groups, where respective indices in this month have decreased, namely: “Transport” by 4.85 percent, “Restaurants and Hotels” by 2.51 percent, “Health” by 1.24 percent, “Communication” by 1.13 percent, “Food and Beverages” by 0.82 percent, “Miscellaneous Goods and Services” by 0.70 percent, “Clothing and Footwear” by 0.64 percent, “Housing, Water, Electricity and other Fuel” by 0.55 percent, and “Furniture and Household Equipment” by 0.44 percent. A slightly increase has been recorded in “Recreation and Culture” by 0.02 percent, it could be considered it as in stable level.
“Tobacco” and “Education” groups had remained flat at the last month’s price level. A comparison of the CPI, April 2020 with the CPI April 2019 (annual change), showed a decrease in the general index (CPI), by 3.06 percent.
This (y-o-y) price decrease is primarily due to the decline in prices seen in six groups namely: “Recreation and Culture” by 13.71 percent, “Clothing and Footwear” by 6.90 percent, “Housing, Water, Electricity and other Fuel” by 4.18 percent, “Communication” by 3.26 percent, “Transport” by 3.09 percent, “ “Furniture and Household Equipment” by 0.75 percent. An increase has been shown in price levels in five groups namely: “Miscellaneous Goods and Services” by 1.49 percent, followed by “Health” by 1.30 percent, “Food and Beverages” by 1.21 percent, “Education” by 1.18 percent, and “Restaurants and Hotels” by 0.60 percent. No changes recorded in “Tobacco” group.
The CPI of April, 2020 excluding “Housing, Water, Electricity and other Fuel” group stood at 96.85 points showing a decrease of 1.54 percent when compared to the index of March 2020, and a decrease of 2.67 percent when compared to the CPI of April 2019.
