The cost of living in Qatar …why it falls?

Cost of living in Qatar falls month-on-month by 0.2% in April. Qatar’s cost of living, based on consumer price index (CPI), fell marginally by 0.2% month-on-month this April, mainly owing to lower expenses towards restaurants, recreation and housing, according to official estimates. The CPI inflation, however, rose 0.6% year-on-year, on costlier transport, health, education, furniture and miscellaneous goods and services, said the figures released by the Ministry of Development Planning and Statistics.

The CPI inflation, however, rose 0.6% year-on-year, on costlier transport, health, education, furniture and miscellaneous goods and services, said the figures released by the Ministry of Development Planning and Statistics
The CPI inflation, however, rose 0.6% year-on-year, on costlier transport, health, education, furniture and miscellaneous goods and services, said the figures released by the Ministry of Development Planning and Statistics
.

International Monetary Fund recently said during 2017–18, subsidy cuts, increase in public fees, a moderate recovery in global commodity prices and the implementation of a value added tax are expected to moderate Qatar’s inflation over the medium term. The index of Restaurants and Hotels, which have 6.08% weight, shrank 0.9% month-on-month this April and 2.7% on a yearly basis.
Recreation and Culture, which have 12.68% weightage in the CPI basket, saw its index fall 0.8% in April 2017 on a monthly basis and 2.6% year-on-year.

Housing, water, electricity and other fuels – with a weight of 21.89% in the CPI basket – saw 0.6% month-on-month dip in its index in April this year and 1.5% year-on-year. The CPI of January 2017, excluding “housing, water, electricity, gas and other fuels” showed an increase of 1.3% on a yearly basis but it was flat on a monthly basis. Communication, which carries 5.87% weight, saw its group index fall 0.1% in April 2017 both on monthly and yearly basis.
However, the index of health, which carries 1.79% weightage, expanded 1.9% month-on-month this April and 2.6% on a yearly basis. Miscellaneous Goods and Services, which have 5.69% weightage, witnessed its index gain 0.6% in April 2017 on a monthly basis and 1.4% year-on-year.

Food and beverages, which has a weight of 12.58% in the CPI basket, saw its group index rise 0.5% this April against the previous month’s level, while it was down 1.3% on a yearly basis.
Transport, which has 14.59% weightage, saw its group index expand 0.3% this April against March 2017 level and 8.4% on a yearly basis. The sector has the direct linkage to the dismantling of the administered prices in petrol and diesel.

Clothing and footwear, which carry 5.11% weight, witnessed 0.2% jump in April this year both on monthly and yearly basis. Although Education, with 5.75% weightage, saw its index unchanged in April 2017 against that in the previous month, overall its index increased 3% on a yearly basis.
Furniture and household equipment, which have 7.7% weightage in the CPI basket, also treaded a flat path this April on a monthly basis but had seen 1.4% increase year-on-year.
Tobacco, which has 0.27% weight, stood unchanged both annually and monthly in April this year.