Over the 12 months to MAY 2018, GCC consumer prices rose by 4.3%

Issue date: 5 July 2018

Over the 12 months to May 2018, Price change for consumer goods and services (excluding housing)[1] in the Gulf Cooperation Council countries rose by 4.3%, 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 55.2%, Transport 9.5%, Restaurant & Hotels by 5.9%, Food 3.5%, Recreation 3.2%, Education 2.9%, Health 2.5%, Miscellaneous 2.4%, Communication 2.0%, and Furnishings 1.6%. On the other hand, Clothing and Footwear fell by -1.8%.

In terms of contributions to the 4.3 percent annual increase, Transport contributed 1.6 percentage points, Food 0.9 percentage points, “Tobacco” and “Restaurant & Hotels” 0.5 percentage points each, Education 0.3 percentage points, and “Furnishings” & “Miscellaneous” 0.2 percentage points each. In contrast, The Clothing and Footwear contributed by -0.1 percentage points.

Over the 12 months to May 2018, the country contributions to overall GCC consumer price change were UAE 2.2 percentage points, Saudi Arabia 1.8 percentage points, Bahrain, Oman, Qatar and Kuwait contributed 0.1 percentage points each.

GCC overall consumer price have stabilized in May 2018 compared with the previous month. The most significant price rises during May 2018 were in Transport 1.0% and “Tobacco” and “Education” by 0.1% each. In contrast, the food fell by -0.7%, and Communication and Recreation by -.0.2% each.

 

 

 

	Table 1. Aggregate GCC inflation
			Index points, 2007=100				Change, Percent
Main Groups		Weights Per cent	May 2017	April 2018	May 2018		May 2018 / April 2018	May 2018 / May 2017
Food and beverage		24.0%	142.2	148.3	147.2		-0.7	3.5
Tobacco		0.7%	179.5	278.4	278.6		0.1	55.2
Clothing and footwear		7.5%	111.3	109.3	109.3		0.0	-1.8
Furnishings, household equipment		10.5%	132.6	134.8	134.8		0.0	1.6
Health		2.7%	117.2	120.1	120.1		0.0	2.5
Transport		16.8%	125.0	135.6	136.9		1.0	9.5
Communication		9.5%	93.0	95.1	94.8		-0.2	2.0
Recreation and culture		5.2%	111.1	114.8	114.6		-0.2	3.2
Education		7.4%	151.2	155.5	155.6		0.1	2.9
Restaurants and hotels		7.5%	136.1	144.1	144.1		0.0	5.9
Miscellaneous		8.3%	134.2	137.4	137.4		0.0	2.4
All Groups Excluding Housing		100.0	128.8	134.5	134.4		0.0	4.3

GCC CONSUMER PRICE CHANGE, MAY 2018

 

 

 

KEY POINTS: May 2017 TO May 2018

 THE GCC ALL GROUPS EXCLUDING HOUSING

• The GCC CPI rose 4.3% over the twelve months, which is the same ratio as in the previous month.
• The most significant price rises over the twelve months were for Tobacco 55.2%, Transport 9.5%, Restaurant & Hotels by 5.9%, Food 3.5%, Recreation 3.2%, Education 2.9%, Health 2.5%, Miscellaneous 2.4%, Communication 2.0%, and Furnishings 1.6%. On the other hand, Clothing and Footwear fell by -1.8%.

 

 CONTRIBUTIONS TO PRICE CHANGE OVER THE 12 MONTHS

• Of the 4.3 percent growth in GCC Consumer Prices over the 12 months to May 2018, the most significant contributors were:
  • Transport contributed 1.6 percentage points.
  • Food contributed 0.9 percentage points.
  • Tobacco and Restaurant & Hotels contributed 0.5 percentage points each.
  • Education contributed 0.3 percentage points.
  • Furnishings and Miscellaneous contributed 0.2 percentage points each.
  • Clothing contributed by -0.1 percentage.

 

• At the country level:
  • UAE contributed 2.2 percentage points.
  • Saudi Arabia 1.8 percentage points.
  • Bahrain 0.1 percentage points.
  • Oman 0.1 percentage points.
  • Qatar 0.1 percentage points.
  • Kuwait 0.1 percentage points.

 

KEY POINTS: May 2018

THE GCC ALL GROUPS EXCLUDING HOUSING

• GCC consumer price have stabilized in May 2018/ April 2018 compared with the previous month rose by 0.1% April 2018/ March 2018.

OVERVIEW OF CPI MOVEMENTS IN MAY 2018

The most significant prices increases during May 2018 were in Transport by 1.0%, and “Tobacco” and “Education” 0.1% each. In contrast the food fell by -0.7% and “Communication” and “Recreation” by -.0.2% each.

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.