Steady Inflation Rates in Qatar Despite Key Group Increases
Qatar’s annual and monthly inflation rate remained stable in June, despite notable hikes in key groups, according to official data released by the National Planning Council.
The Consumer Price Index for June stood at 107.52 points, slightly lower than May’s 107.59 points. This represents a 0.98 percent year-on-year increase from June 2023, with a minor 0.07 percent decrease from May 2024.
Qatar’s consistent inflation rates are in line with its economic growth plans, including the Third National Development Strategy launched earlier this year. The country aims to achieve an average annual economic growth rate of 4 percent until 2030 by expanding gas production, supporting financial diversification sectors, and establishing specialized economic clusters.
Price Hikes in Key Groups
The year-on-year CPI increase is primarily driven by significant price hikes in five key groups. Recreation and culture saw a surge of 14.09 percent, while education rose by 3.42 percent. Additional increases were observed in miscellaneous goods and services (2.83%), clothing and footwear (0.98%), and food and beverages (0.09%).
However, price levels decreased in categories such as communication (4.62%), housing, water, electricity, and other fuel (3.10%), restaurants and hotels (1.79%), health (1.77%), furniture and household equipment (1.71%), and transport (0.32%). The tobacco category remained unchanged.
Monthly Trends in CPI Components
A month-on-month comparison of the main CPI components for June revealed mixed trends. Five groups experienced price decreases, including food and beverages (3.12%), clothing and footwear (0.86%), transport (0.61%), housing, water, electricity, and other fuel (0.47%), and miscellaneous goods and services (0.18%).
On the other hand, prices increased in communication (9.29%), recreation and culture (1.24%), restaurants and hotels (0.13%), and furniture and household equipment (0.07%). The education category saw a slight increase of 0.04%, while tobacco and health remained unchanged.
Producer Price Index for the Industrial Sector
Qatar’s Producer Price Index (PPI) for the industrial sector in June consists of four main industry sectors: mining (82.46%), manufacturing (15.85%), electricity (1.16%), and water (0.53%).
June’s PPI reached 115.73 points, marking a 0.46 percent increase from May and a 6.31 percent year-on-year increase. In the mining and quarrying sector, the PPI rose by 0.67 percent in June, driven by price increases in crude petroleum and natural gas.
The manufacturing sector, however, recorded a 0.42 percent decrease in June due to falling prices in certain groups but saw increases in others. The PPI for electricity, gas, steam, and air conditioning supply fell by 5.84 percent compared to May, while the water supply sector saw an increase of 3.33 percent.