Over the 12 months to February 2018, GCC consumer prices rose by 4.7%

Over the 12 months to February 2018, Price change for consumer goods and services (excluding housing)[1] in the Gulf Cooperation Council countries rose by 4.7%, 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 55.4%, Transport 9.4%, Restaurant & Hotels by 6.5%, Food 5.2%, Recreation 2.9%, Education 2.8%, Miscellaneous 2.5%, Health 2.2%, Furnishings 1.7%, and Communication 1.4%. On the other hand, Clothing and Footwear fell by -2.2%.

In terms of contributions to the 4.7 percent annual increase, Transport contributed 1.5 percentage points, Food 1.4 percentage points, Tobacco and Restaurant & Hotels 0.5 percentage points each, Furnishings, Education and Miscellaneous 0.2 percentage points each. In contrast, The Clothing and Footwear contributed by -0.1 percentage points.

Over the 12 months to February 2018, the country contributions to overall GCC consumer price change were UAE 2.3 percentage points, Saudi Arabia 2.0 percentage points, Bahrain, Qatar and Kuwait contributed 0.1 percentage points each, and Oman 0.0 percentage points. This significant rise in the prices of goods and services is due to the implantation of value added tax and selective taxation in the United Arab Emirates and Saudi Arabia and selective taxation in the Kingdom of Bahrain, which was agreed by the Committee of Financial and Economic Cooperation of the GCC Finance Ministers on 27 October 2016.

GCC overall consumer price have stabilized in February 2018 compared with the previous month. The most significant price rises during February 2018 were in Furnishings 0.5% and Restaurant & Hotels by 0.4% and Tobacco by 0.1%. In contrast, The Food and Clothing & Footwear fell by -0.2% each, “Health”, “Transport”, and “Communication” by -0.1%.

 

	Table 1. Aggregate GCC inflation
			Index points, 2007=100				Change, Percent
Main Groups		Weights Per cent	February 2017	January 2018	February 2018		February 2018 / January 2018	February 2018 / February 2017
Food and beverage		24.0%	141.7	149.4	149.1		-0.2	5.2
Tobacco		0.7%	178.8	277.6	277.8		0.1	55.4
Clothing and footwear		7.5%	110.9	108.7	108.5		-0.2	-2.2
Furnishings, household equipment		10.5%	132.9	134.5	135.2		0.5	1.7
Health		2.7%	117.3	120.0	119.9		-0.1	2.2
Transport		16.8%	124.5	136.3	136.2		-0.1	9.4
Communication		9.5%	93.7	95.1	95.1		-0.1	1.4
Recreation and culture		5.2%	111.8	115.0	115.0		0.0	2.9
Education		7.4%	151.1	155.3	155.3		0.0	2.8
Restaurants and hotels		7.5%	135.7	143.9	144.5		0.4	6.5
Miscellaneous		8.3%	134.7	138.0	138.0		0.0	2.5
All Groups Excluding Housing		100.0	128.7	134.8	134.8		0.0	4.7

GCC CONSUMER PRICE CHANGE, FEBRUARY 2018

 

 

 

 

KEY POINTS: FEBRUARY 2017 TO FEBRUARY 2018

 THE GCC ALL GROUPS EXCLUDING HOUSING

• Rose 4.7 percent over the twelve months, compared to 9% rise over the period January 2018/ January 2017.
• The most significant price rises over the twelve months were for Tobacco 55.4%, Transport 9.4%, Restaurant & Hotels by 6.5%, Food 5.2%, Recreation 2.9%, Education 2.8%, Miscellaneous 2.5%, Health 2.2%, Furnishings 1.7%, and Communication 1.4%. On the other hand, Clothing and Footwear fell by -2.2%.

 

 CONTRIBUTIONS TO PRICE CHANGE OVER THE 12 MONTHS

• Of the 4.7 percent growth in GCC Consumer Prices over the 12 months to February 2018, the most significant contributors were:
  • Transport contributed 1.5 percentage points.
  • Food contributed 1.4 percentage points.
  • Tobacco and Restaurant & Hotels contributed 0.5 percentage points each.
  • Furnishings, Education and Miscellaneous contributed 0.2 percentage points each.
  • Clothing contributed by -0.1 percentage.

 

• At the country level:
  • UAE contributed 2.3 percentage points.
  • Saudi Arabia 2.0 percentage points.
  • Bahrain 0.1 percentage points.
  • Qatar 0.1 percentage points.
  • Kuwait 0.1 percentage points.
  • Oman 0.0 percentage points.

 

KEY POINTS: FEBRUARY 2018

THE GCC ALL GROUPS EXCLUDING HOUSING

• GCC consumer price have stabilized in February 2018/ January 2018 compared with the previous month rose by 3.6% January 2018/ December 2017.

OVERVIEW OF CPI MOVEMENTS IN FEBRUARY 2018

• The most significant price rise this month are Furnishings 0.5% and Restaurant & Hotels by 0.4% and Tobacco by 0.1%. In contrast, The Food and Clothing & Footwear fell by -0.2% each, “Health”, “Transport”, and “Communication” by -0.1%.

 

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 (http://gccstat.org/en/elibrary/publications/gccstat/item/aggregate-gcc-inflation

 

[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.