Rising rents, food and medical expenses led Qatar's cost of living, based on consumer price index (CPI), representing a 3.7% year-on-year (y-o-y) rise in April this year, according to official figures.
The CPI inflation was up 0.10% compared to that in March 2013, figures released by the Qatar Statistics Authority (QSA) revealed.
According to the International Monetary Fund, Qatar's average inflation is expected to be 4%-5% in the medium term.
A recent EC Harris report had said Qatar's construction inflation could peak to 18% during the World Cup building boom between 2016 and 2019, potentially adding billions to the cost of development and overheating the economy.
The Rent, Fuel and Energy group, which is the most influential and carry the maximum weight of 32.20% in the CPI basket, saw its index surge 6.20% y-o-y in April and the index gained 0.20% from the previous month's level.
After eliminating the effect of rent, although the overall index was unchanged from the previous month's level, it "showed an increase of 2.9% when compared to April 2012," the QSA spokesman said. Moving towards 2013, Qatar is expected to witness hardening of inflationary pressure as falling rents would be stripped out of the equation, according to HSBC economists.
Among the other sectors, the highest inflation was seen in entertainment, recreation and culture, which carry a weight of 10.90% in the CPI basket, as its group index shot up 8.2% compared to April 2012 but was down 0.10% from the previous month's level.
Medical care and medical services group, which has 2% weight, reported a 2.50% increase y-o-y in April 2013 and the index rose 0.80% compared to the previous month level. Transport and Communication, which has a weight of 20.50% in the CPI basket, also witnessed its index gain 2.50% y-o-y in April this year and the index was up 0.60% from the previous month's level.
Food, beverages and tobacco, which has a weight of 13.20% in the CPI basket, saw 2.30% acceleration y-o-y in April 2013; while the index was unchanged from March this year. Furniture, textiles and home appliances, which has a weight of 8.20% in the CPI basket, saw its group index rise 3.10% y-o-y; even as the index was down 0.60% from March 2013.
Garments and footwear group, which carry 5.80% in the CPI basket, saw their price rise 0.30% y-o-y in April this year while the index fell 0.20% from the previous month's level.
However, miscellaneous goods and services, which carry 7.20% weight in the CPI basket, saw its group become cheaper by 0.60% y-o-y in April 2013. The index was down 0.70% from the previous month.
© Gulf Times 2013
