Over the 12 months to June 2018, GCC consumer prices rose by 4.2%

Issue date: 2 August 2018

Over the 12 months to June 2018, Price change for consumer goods and services (excluding housing)[1] in the Gulf Cooperation Council countries rose by 4.2%, 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 20.5%, Transport 9.4%, Restaurant & Hotels by 5.9%, Recreation 4.0%, Food 3.7%, Education 2.9%, Health 2.5%, “Communication” and “Miscellaneous” 2.1% each, and Furnishings 2.0%. On the other hand, Clothing and Footwear fell by -1.3%.

In terms of contributions to the 4.2 percent annual increase, Transport contributed 1.5 percentage points, Food 1.0 percentage points, Restaurant & Hotels 0.5 percentage points, Education 0.3 percentage points, and “Tobacco”, “Furnishings”, “Recreation” & “Miscellaneous” 0.2 percentage points each, Health and Communication 0.1 percentage points each. In contrast, The Clothing and Footwear contributed by -0.1 percentage points.

Over the 12 months to June 2018, the country contributions to overall GCC consumer price change were UAE 2.1 percentage points, Saudi Arabia 1.7 percentage points, Bahrain, Oman, Qatar and Kuwait contributed 0.1 percentage points each.

GCC overall consumer price have increased in June 2018 compared with the previous month by 0.6%. The most significant price rises during June 2018 were in Transport 1.4%, food 1.0%, Clothing and Footwear 0.8%, Recreation 0.3% and Furnishings by 0.2%. In contrast, “Communication” and “Miscellaneous” fell by -0.1% each.

 

 

	Table 1. Aggregate GCC inflation
			Index points, 2007=100				Change, Percent
Main Groups		Weights Per cent	June 2017	May 2018	June 2018		June 2018 / May 2018	June 2018 /  June 2017
Food and beverage		24.0%	143.4	147.2	148.7		1.0	3.7
Tobacco		0.7%	231.4	278.6	278.9		0.1	20.5
Clothing and footwear		7.5%	111.7	109.3	110.2		0.8	-1.3
Furnishings, household equipment		10.5%	132.5	134.8	135.1		0.2	2.0
Health		2.7%	117.2	120.1	120.2		0.1	2.5
Transport		16.8%	126.8	136.9	138.8		1.4	9.4
Communication		9.5%	92.8	94.8	94.8		-0.1	2.1
Recreation and culture		5.2%	110.6	114.6	115.0		0.3	4.0
Education		7.4%	151.3	155.6	155.7		0.0	2.9
Restaurants and hotels		7.5%	136.3	144.1	144.3		0.1	5.9
Miscellaneous		8.3%	134.4	137.4	137.3		-0.1	2.1
All Groups Excluding Housing		100.0	129.8	134.4	135.2		0.6	4.2

GCC CONSUMER PRICE CHANGE, JUNE 2018

 

 

 

 

KEY POINTS: June 2017 TO June 2018

 THE GCC ALL GROUPS EXCLUDING HOUSING

• The GCC CPI rose 4.2% over the twelve months, compared with increase of 4.3% in May 2018/ May 2017.
• The most significant price rises over the twelve months were for Tobacco 20.5%, Transport 9.4%, Restaurant & Hotels by 5.9%, Recreation 4.0%, Food 3.7%, Education 2.9%, Health 2.5%, Communication and Miscellaneous 2.1% each, and Furnishings 2.0%. On the other hand, Clothing and Footwear fell by -1.3%.

 

 CONTRIBUTIONS TO PRICE CHANGE OVER THE 12 MONTHS

• Of the 4.2 percent growth in GCC Consumer Prices over the 12 months to June 2018, the most significant contributors were:
  • Transport contributed 1.5 percentage points.
  • Food contributed 1.0 percentage points.
  • Restaurant & Hotels contributed 0.5 percentage points.
  • Education contributed 0.3 percentage points.
  • Tobacco, Furnishings, Recreation and Miscellaneous contributed 0.2 percentage points each.
  • Clothing contributed by -0.1 percentage.

 

• At the country level:
  • UAE contributed 2.1 percentage points.
  • Saudi Arabia 1.7 percentage points.
  • Bahrain 0.1 percentage points.
  • Oman 0.1 percentage points.
  • Qatar 0.1 percentage points.
  • Kuwait 0.1 percentage points.

 

KEY POINTS: June 2018

THE GCC ALL GROUPS EXCLUDING HOUSING

• GCC consumer price have increased by 0.6% in June 2018/ May 2018.

OVERVIEW OF CPI MOVEMENTS IN MAY 2018

• The most significant prices increases during May 2018 were in Transport 1.4%, food 1.0%, Clothing and Footwear 0.8%, Recreation 0.3% and Furnishings by 0.2%. In contrast, “Communication” and “Miscellaneous” fell by -0.1% each.

Further information and statistics are available from the GCC-Stat website: http://www.gccstat.org

[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.