Qatar: Inflation drops to lowest level in over three years in April
Inflation eased to 0.7% in April, edging down from March’s 1.0%. April’s figure represented the weakest inflation rate since March 2021. The reading was largely due to stronger price pressures for food and a rebound in prices for transport.
Accordingly, the trend pointed down, with annual average inflation coming in at 2.2% in April (March: 2.5%).
Lastly, consumer prices rose 0.42% over the previous month in April, contrasting March’s 1.40% drop. April’s jump was the sharpest increase in prices since December 2023.
Our panelists expect inflation to pick up notably from current levels in May and June, before stabilizing to just over 2% in Q3. Thereafter, inflation should dip back below 2% (10-year average: 1.5%).
Analysts at Fitch Solutions said:
“Inflation rose strongly in the course of the previous decade, posting a record high of 15.2% over 2008. Recent years have seen a moderation. We expect the government’s efforts to gradually reform the subsidy system and introduce a VAT following the excise taxes introduced in January 2019, stronger demand from tourism and elevated global commodity prices will keep inflationary pressures in the years ahead higher by historical standards.”