The latest data by Planning and Statistics Authority (PSA) shows a 1.22 percent increase in Consumer Price Index (CPI) and a 6.03 percent annual increase. Bank Audi, one of the personal and private banking firm operating in the Middle East in a report stated that consumer prices in Qatar rose by 4.2 percent this year compared to an average surge of 2.3 percent last year and these costs will continue to incline while it helps drive the country’s economic growth.
“Qatar’s consumer prices return to inflation,” the report said adding that it has returned to positive territory in the previous year and is forecasted to continue rising in 2022. While the prices pursue an upward streak, the country’s economy is reported to be reinforced and strengthened by the recovery from the worldwide epidemic caused due to COVID-19 and supply chain disruptions.
The CPI breakdown by segments evinces the culture and recreation segment, which has a weight of 11.1 percent and registered the largest year-on-year expansion of 28.6 percent initially on an average this year followed by the food and beverages segment with over 5.9 percent (with a weight of 13.5 percent), the transport industry with 4.3 percent (weight of 14.6 percent), the miscellaneous goods and services
with more than 3.7 percent, the clothing and footwear segment with 1.6 percent, housing, water, electricity, and gas segment and the education segment with 0.5 percent each, and the furnishings and household equipment and the communication with 0.4 percent each, the report noted.
On the other hand, the healthcare sector posted an annual cost of 3.1 percent on average this year in contrast to the above figures. The data also highlights that international reserves and foreign currency liquidity of Qatar Central Bank (QCB) grew by $ 1.4bn last year to reach $57.7bn and rose over $57.8bn this year.
The report signals that it could be a vital boost for the Gulf State’s economy. It also highlighted that the QCB international reserves and foreign currency liquidity covered nearly 48.7% of the money supply in local currency in the previous year comparatively as the coverage ratio fell to 46.8% this year given a 4.4% growth in money supply in Qatari Riyal.
The report outlines that the broader Money Supply (M2) “grew significantly” by $6.7bn in 2022 following a $2.4bn expansion last year. “This is mainly driven by a $3.5bn increase in the money supply (M1), a $1.6bn rise in time deposits, and a $ 1.6bn expansion in deposits in foreign currencies,” it added.
