Lower food, restaurant prices drag Qatar's inflation month-on-month in February: PSA

Qatar's inflation, based on consumer price index (CPI), was down 0.06% month-on-month in February 2023, mainly dragged by lower food and restaurant prices, according to the official estimates.However, the country's CPI inflation was higher by 4.41% on an annualised basis this February, said the figures released by the Planning and Statistics Authority (PSA).The country's core inflation (excluding housing and utilities) rather rose 0.09% and 3.37% month-on-month and year-on-year respectively during the review period."The average inflation will ease substantially this year to 2.3%, less than half the average pace of 5% in 2022," said the latest Economic Insight report for the Middle East, commissioned by the Institute of Chartered Accounts in England and Wales or ICAEW and compiled by Oxford Economics.The restaurants and hotels group, with a 6.61% weight, saw its index shrink 2.12% on a monthly basis but shot up 4.45% year-on-year in February 2023, the PSA said.Food and beverages group, which carry 13.45% weight in the CPI basket, became cheaper by 1.45% and 1.29% month-on-month and year-on-year respectively in February 2023.The index of clothing and footwear, which has a 5.58% weight in the CPI basket, declined 0.8% month-on-month but gained 0.7% on a yearly basis in February 2023.The index of housing, water, electricity and other fuels – with a weight of 21.17% in the CPI basket – was down 0.62% month-on-month but showed an 8.94% growth year-on-year in February 2023.The index of miscellaneous goods and services, with a 5.65% weight, was down 0.28% and 0.23% month-on-month and year-on-year respectively in the review period.However, the index of recreation and culture, which has an 11.13% weight in the CPI basket, was seen gaining 3.75% and 20.8% month-on-month and year-on-year respectively in February 2023.The index of transport, which has a 14.59% weight, grew 0.24% and 2.38% on monthly and yearly basis respectively in February 2023.The sector has the direct linkage to the dismantling of the administered prices in petrol and diesel as part of the government measures to lower the subsidies.The index of furniture and household equipment, which has 7.88% weight in the CPI basket, was up 0.11% month-on-month but fell 0.04% on an annualised basis this February.Communication, which carries a 5.23% weight, saw its group index tread a flat path month-on-month but shrank 4.84% year-on-year in the review period.The education sector, which has 7.33% in the CPI basket, saw its index was unchanged on a monthly basis but shot up 4.26% year-on-year this February.The index of health, which has a 2.65% weight, was flat month-on-month but expanded 1.62% year-on-year in February 2023.The tobacco index, which has a 0.28% weight, was unchanged on yearly and monthly basis in the review period.