Qatar: Inflation declines to lowest level since March 2021 in July
Inflation dropped to 0.2% in July from June’s 1.0%. July’s result marked the lowest inflation rate since March 2021. The decline was broad-based, with falling price pressures for food, transport, plus housing and utilities.
Annual average inflation ticked down to 1.6% in July (June: 1.8%).
Lastly, consumer prices dropped 0.38% in July over the previous month, a sharper drop than the 0.07% fall logged in June. July’s result marked the weakest reading since March.
Our panelists expect inflation to average higher than in July in August–September, before dipping again in Q4. Price pressures will remain tepid ahead, restrained by the Qatar riyal’s peg with the U.S. dollar.
EIU analysts commented:
“The QCB’s currently restrictive monetary stance is also dampening inflationary pressures. We therefore expect average inflation to slow to just 1.2% in 2024, before rising to 3.2% in 2025 as VAT is finally introduced and monetary policy is gradually eased.”