Kahramaa had in September introduced new slab system for the pricing of electricity and water to rationalise consumption and better its financial health

By Santhosh V Perumal
Business Reporter


Qatar’s cost of living, based on consumer price index (CPI), expanded 1.9% year-on-year (y-o-y) in November, mainly on higher prices for education, tobacco, transport and food as well as higher rents, official figures suggest.
The overall CPI inflation in November was up 0.3% against the October levels mainly on higher prices for recreation and rents, according to the figures released by the Ministry of Development Planning and Statistics (MDPS).
The housing, water, electricity and gas group – with a weight of 21.89% in the CPI basket - saw its index rise 2.6% y-o-y in November this year and it was up 0.8% from the previous month’s level.
Kahramaa had in September introduced new slab system for the pricing of electricity and water in order to rationalise the consumption and better its financial health. The CPI of October 2015, excluding the “housing, water, electricity, gas and other fuels” group showed an increase of 1.8% y-o-y, but showed a slight 0.1% increase compared with the previous month.
Expecting consumer price levels to be “muted”, MDPS in it Qatar Economic Outlook for 2015-17 said the country’s CPI inflation is likely to come down to 2% this year from 3.3% in 2014, but will see a modest pickup in the next two years.
The education group, which carries 5.75% weight in the CPI basket, saw the maximum rise of 18% y-o-y in November 2015 and the index was unchanged from the October level.
The tobacco group, which has 0.27% weight in the CPI basket, increased 6.3% y-o-y in November this year but month-on-month, it was unchanged.
The transport sector, which has 14.59% weight in the CPI basket, saw its group index expand 3.2% y-o-y in November 2015; while it fell 0.3% against the previous month’s level.
The food and beverage segment, which has a weight of 12.58% in the CPI basket, saw its group index rise 1.6% y-o-y in November, but it was down 0.4% against the October levels.
The clothing and footwear group, which carries 5.11% weight in the CPI basket, saw 0.1% y-o-y increase in its index in November 2015; while it fell by a similar proportion compared to October this year.
The furnishings and household equipment group, which carries 7.7% weightage in the CPI basket, witnessed a 0.4% y-o-y rise in its index in November this year and it was up 0.2% from October levels.
However, the recreation and culture segment, which has 12.68% weightage in the CPI basket, saw its index plunge 2.2% y-o-y in November 2015, but shot up 1.6% compared to October this year.
The restaurants and hotels segment, which has 6.08% weight in the CPI basket, saw its group index fall 1% y-o-y in November 2015, but it was unchanged month-on-month.
The communication sector, which carries 5.87% weight in the CPI basket, saw its group index decrease 0.6% y-o-y in November this year; while it was unchanged from the previous month’s levels.
The health sector, which carries 1.79% weightage in the CPI basket, witnessed a 0.3% fall y-o-y in November this year; even as the index was unchanged month-on-month.
The miscellaneous goods and services segment, which has 5.69% weightage in the CPI basket, witnessed 0.1% fall y-o-y in November this year but reported a sharper 0.9% decline against the October levels.