Qatar’s annual consumer price inflation rate rose to 2.5 percent in October, its highest since the country’s Statistics Authority began publishing year-on-year data every month in the beginning of 2010.
The hike was driven by price increases in transport, communications and consumer goods, the government said. Rent was the only major category to see a drop in prices, largely due to an oversupply of homes on the market.
When inflation rose in August, Qatar began mulling price controls, partly to protect consumers after the government approved huge salary hikes for nationals. The rate rose slightly in September due to food costs, from 2.1 to 2.2 percent.
Qatar’s central bank governor Sheikh Abdullah bin Saud al-Thani said last month that he expected inflation this year of 2.5 percent.
Although inflation has been trending up throughout this year, from 1.6 percent in January and deflation of 2.4 percent last year, it is still far below the record 15 percent seen in the oil-boom year of 2008.
Analysts polled by Reuters in September predicted Qatar would see average inflation of 2.7 percent in 2011 and 3.5 percent next year.
Have rising prices affected your standard of living in Qatar?