Over the 12 months to December 2018, GCC consumer prices rose by 3.7%

                

Issue date: 6 February 2019

 
Over the 12 months to December 2018, price level for consumer goods and services (excluding housing)[1] in the Gulf Cooperation Council countries rose by 3.7%, according to figures released today by GCC-Stat, the Statistical Center for the Cooperation Council of the Arab Countries of the Gulf.

The biggest increases were for Tobacco 10.3%, Transport 6.2%, Restaurant & Hotels by 6.0%, Food 3.8%, Furnishings 3.6%, Health 2.8%, Recreation 2.1%, Education 2.0%, Clothing and Footwear 1.9%, Communication 1.7%, and Miscellaneous 1.0%.

In terms of contributions to the 3.7 percent annual increase, Food and Transport contributed 1.0 percentage points each, Restaurant & Hotels 0.5 percentage points, Furnishings 0.4 percentage points, Education 0.2 percentage points, “Tobacco”, “Clothing and Footwear”, “Health”, “Communication”, “Recreation” and “Miscellaneous” 0.1 percentage points each.

Over the 12 months to December 2018, the contributions to overall GCC consumer price change were almost exclusively from Saudi Arabia and UAE, with 2.4 and 1.0 percentage points of the total 3.7 percent. Kuwait contributed 0.1 percentage points, while Bahrain, Oman and Qatar all contributed less than 0.1 percent this month.

GCC overall consumer price have decreased slightly in December 2018 compared with the previous month by -0.2%. The most significant price decreases during December 2018 were in Transport group by – 0.7%, Food -0.5%, Clothing -0.2%, and Communication -0.1%. In contrast, Recreation prices increased by 1.0%, Tobacco 0.2%, “Health”, “Education”, and “Restaurant & Hotels” 0.1% each, while there is no change of prices in “Furnishings”, and “Miscellaneous” compared with the previous month.

 

	Table 1. Aggregate GCC inflation
			Index points, 2007=100				Change, Percent
Main Groups		Weights Per cent	December 2017	November  2018	December 2018		December 2018 /      November 2018	December 2018 /       December 2017
Food and beverage		24.0%	144.1	150.3	149.6		-0.5	3.8
Tobacco		0.7%	254.2	279.9	280.3		0.2	10.3
Clothing and footwear		7.5%	108.5	110.8	110.6		-0.2	1.9
Furnishings, household equipment		10.5%	130.1	134.7	134.7		0.0	3.6
Health		2.7%	117.2	120.3	120.4		0.1	2.8
Transport		16.8%	127.6	136.5	135.5		-0.7	6.2
Communication		9.5%	92.8	94.4	94.3		-0.1	1.7
Recreation and culture		5.2%	111.4	112.7	113.8		1.0	2.1
Education		7.4%	154.8	157.8	157.9		0.1	2.0
Restaurants and hotels		7.5%	137.2	145.4	145.5		0.1	6.0
Miscellaneous		8.3%	134.4	135.7	135.8		0.0	1.0
All Groups Excluding Housing		100.0	130.1	135.2	134.9		-0.2	3.7

GCC CONSUMER PRICE CHANGE, December 2018

 

 

 

KEY POINTS: December 2017 to December 2018

 THE GCC ALL GROUPS EXCLUDING HOUSING

• The GCC non-Housing Inflation rose 3.7% over the twelve months, compared with increase of 4.3% in November 2018 over the twelve months.
• The most significant price rises over the twelve months were for Tobacco 10.3%, Transport 6.2%, Restaurant & Hotels by 6.0%, Food 3.8%, Furnishings 3.6%, Health 2.8%, Recreation 2.1%, Education 2.0%, Clothing and Footwear 1.9%, Communication 1.7%, and Miscellaneous 1.0%.

 

 CONTRIBUTIONS TO PRICE CHANGE OVER THE 12 MONTHS

• Of the 3.7 percent growth in GCC Consumer Prices over the 12 months to December 2018, the most significant contributors were:
  • Food and Transport contributed 1.0 percentage points each.
  • Restaurant & Hotels contributed 0.5 percentage points.
  • Furnishings contributed 0.4 percentage points.
  • Education contributed 0.2 percentage points.
  • Tobacco, Clothing and Footwear, Health, Communication, Recreation and Miscellaneous contributed 0.1 percentage points each.

 

• At the country level:
  • Saudi Arabia contributed 2.4 percentage points.
  • UAE 1.0 percentage points.
  • Kuwait 0.1 percentage points.
  • Bahrain, Oman and Qatar all contributed less than 0.1 percent this month.

 

KEY POINTS: November 2018 to December 2018

THE GCC ALL GROUPS EXCLUDING HOUSING

• GCC consumer price have decreased slightly by -0.2% in December 2018 compared with the previous month.

OVERVIEW OF CPI MOVEMENTS IN December 2018

• The most significant price decrease during December 2018 were in Transport group by
  – 0.7%, Food -0.5%, Clothing -0.2%, and Communication -0.1%. In contrast, Recreation prices increased by 1.0%, Tobacco 0.2%, “Health”, “Education”, and “Restaurant & Hotels” 0.1% each, while there is no change of prices in “Furnishings”, and “Miscellaneous” compared with the previous month.

Further information and statistics are available from the GCC-Stat website: http://www.gccstat.org
For more details on the construction of the GCC index of consumer price change, see (https://www.gccstat.org/images/gccstat/docman/Standards/GCC_aggregate_inflation_-_methodology.pdf)

 

[1]  GCC-Stat compiles an aggregate inflation measure for the whole GCC region. This aggregate excludes the “Housing, water, electricity, gas and other related items” group from national indices, for which the data are deemed non-comparable due to methodological differences that significantly hinders cross-country comparisons. The national CPI data are weighted into a GCC aggregate using Purchasing power parity adjusted estimates of relevant national household consumption expenditures.