Qatar’s CPI-based monthly inflation witnessed a marginal increase of 0.48 percent in August compared to previous month (July 2020) as consumer demand picked up momentum with the phased easing of COVID-19 restrictions.
The Consumer Price Index (CPI) of August 2020 reached to 96.19 point, latest official data showed. When compared on annual basis the prices, the consumer prices in Qatar (as per the general CPI index) have decreased by 4.05 percent compared to the CPI of the same month last year, according to data released by Planning and Statistics Authority (PSA).
The price decline was understandably due to lockdown which affected the demand for transportation, recreation and culture and other goods and services.
But some analysts say that if a deflationary situation continued for a longer period can be a cause of concern for the businesses and investors as consumers may delay their purchasing decisions to future impacting the aggregate demand.
This release of CPI, is the eighth issuance using the new base of 2018, calculated from the results of the household income and Expenditure survey 2017/2018. Classification of Individual Consumption According to Purpose (CIOCOP) has been used, which divided the prices basket to twelve main groups, started with “Food and Nonalcoholic beverages” group, and to end up with “Miscellaneous goods and Services” group. 737 commodities and services have been covered all the groups.
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, since 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.
A month-on-month analysis of the CPI for August 2020 compared with the CPI of July 2020, showed that there were five main groups, where respective indices during this month have increased, namely: “Recreation and Culture” by 2.29 percent, “Miscellaneous Goods and Services” by 2.02 percent, “Food and Beverages” by 1.93 percent, “Education” by 1.58 percent, “Furniture and Household Equipment” by 0.27 percent.
A decrease has been recorded in “Transport” by 0.65 percent, followed by “Clothing and Footwear” by 0.57 percent, and “Housing, Water, Electricity and other Fuel” by 0.49 percent.
“Tobacco”, “Health”, “Communication”, and “Restaurants and Hotels” had remained flat at the last month’s price level.
A comparison of the CPI, August 2020 with the CPI, August 2019 (annual change), a decrease has been recorded in the general index (CPI), by 4.05 percent. This y-o-y price decrease was primary due to the prices decline in five groups namely: “Recreation and Culture” by 22.70 percent, Transport” by 6.73 percent, “Housing, Water, Electricity and other Fuel” by 4.91 percent, “Clothing and Footwear” by 4.26 percent, “Communication” by 0.81 percent.
The CPI of August , 2020 excluding “Housing, Water, Electricity and other Fuel” group stands at 97.38 points showing an increase of 0.73 percent when compared to the index of July 2020, and a decrease of 3.72 percent when compared to the CPI of August 2019.
