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Cost of living in Qatar stabilized by falling rentals

The cost of living in Qatar has increased only marginally last year, owing to constant decline in rentals, revealed an official data yesterday. The prices grew by hardly 1.2percent within a year since January 2011 although the relatively lower rate of inflation has been largely due to plummeting rents.

When the impact of rentals is eliminated, the overall Consumer Price Index (CPI) shows a growth in prices at 4percent, in comparison to January 2011. There was hardly any growth in prices between December 2011 and January 2012, the QSA (Qatar Statistical Authority) said.

For instance, within a month since December 2011, the cost of miscellaneous goods and services grew 2.3percent, while prices of garments and footwear grew 1.6percent. However, other cost of living parameters like costs of rentals, food and medical care dropped, offsetting increases in prices of the said items.

It is for the first time in recent months that prices of food remained stable, although over a brief period of one month, the QSA figures showed that prices grew overall between 2.3percent and 6.8percent in a year’s time. Miscellaneous goods and services were the most expensive at 6.8percent, followed by footwear and garments at 5.4% and textiles, recreation and home appliances at 5% each.

A senior official of the General Secretariat of Development Planning (GSDP) in Qatar had suggested during a recent media interview that stabilizing rentals will keep inflationary pressures under check, allaying fears of higher inflation.

Posted on 21/2/2012