The prices of consumer goods and services in the GCC countries decreased by -0.1% over the 12 months to February 2019

Issue date: 15 April 2019

 

 

The prices of consumer goods and services (excluding housing)[1] in the Gulf Cooperation Council countries decreased by -0.1% Over the 12 months to February 2019, according to figures released today by GCC-Stat, the Statistical Center for the Cooperation Council of the Arab Countries of the Gulf.[2]

The biggest decreases were for Transport -3.2%, Recreation -0.6%, Communication -0.4%, Food -0.1%. In contrast, Tobacco increased by 2.7%, Education 1.8%, Clothing and Footwear 1.5%, Restaurant & Hotels 1.3%, Furnishings 1.0%, Health 0.5% and Miscellaneous 0.1%.

In terms of contributions, Transport group contributed -0.6 percentage points. In contrast, Clothing and Footwear, Furnishings, Education and Restaurant & Hotels contributed 0.1 percentage points each, while the rest of the groups did not record any contribution this month.

In terms of contributions to overall GCC consumer price change Over the 12 months to February 2019, UAE contributed -0.2 percentage points. In contrast, Kuwait contributed 0.1 percentage points, while the rest of the GCC countries did not record any contribution this month.

GCC overall consumer price have decreased slightly in February 2019 compared with the previous month by -0.1%. The most significant price decreases during February 2019 were in Food group by -0.6%, Transport and Recreation -0.5% each. In contrast, Miscellaneous prices increased by 1.4%, Furnishings and Restaurant & Hotels 0.1% each, while the rest of the groups did not record any changes this month.

 

 

	Table 1. Aggregate GCC inflation
			Index points, 2007=100				Change, Percent
Main Groups		Weights Per cent	February 2018	January 2019	February 2019		February 2019/        January 2019	February 2019/         February 2018
Food and beverage		24.0%	149.1	149.9	149.0		-0.6	-0.1
Tobacco		0.7%	277.8	285.5	285.4		0.0	2.7
Clothing and footwear		7.5%	108.5	110.1	110.1		0.0	1.5
Furnishings, household equipment		10.5%	135.2	136.3	136.4		0.1	1.0
Health		2.7%	119.9	120.4	120.4		0.0	0.5
Transport		16.8%	136.2	132.4	131.8		-0.5	-3.2
Communication		9.5%	95.1	94.6	94.6		0.0	-0.4
Recreation and culture		5.2%	115.0	114.8	114.3		-0.5	-0.6
Education		7.4%	155.3	158.0	158.0		0.0	1.8
Restaurants and hotels		7.5%	144.5	146.2	146.4		0.1	1.3
Miscellaneous		8.3%	138.0	136.2	138.1		1.4	0.1
All Groups Excluding Housing		100.0	134.8	134.8	134.6		-0.1	-0.1

GCC CONSUMER PRICE CHANGE, February 2019

 

 

 

KEY POINTS: February 2018 to February 2019

 THE GCC ALL GROUPS EXCLUDING HOUSING

• The prices of consumer goods and services (excluding housing) in the Gulf Cooperation Council countries was decreased by -0.1% Over the 12 months to February 2019.
• The most significant price decreases over the twelve months were for Transport -3.2%, Recreation -0.6%, Communication -0.4%, Food -0.1%. In contrast, Tobacco increased by 2.7%, Education 1.8%, Clothing and Footwear 1.5%, Restaurant & Hotels 1.3%, Furnishings 1.0%, Health 0.5% and Miscellaneous 0.1%.

 

 CONTRIBUTIONS TO PRICE CHANGE OVER THE 12 MONTHS

• The most significant contributors to the GCC Inflation(excluding housing) were:
  • Transport group contributed -0.6 percentage points.
  • In contrast, Clothing and Footwear, Furnishings, Education and Restaurant & Hotels contributed 0.1 percentage points each.
  • While the rest of the groups did not record any contribution this month.

 

• At the country level:
  • UAE contributed -0.2 percentage points.
  • In contrast, Kuwait contributed 1 percentage points.
  • While the rest of the GCC countries did not record any contribution this month.

 

KEY POINTS: January 2019 to February 2019

THE GCC ALL GROUPS EXCLUDING HOUSING

• GCC consumer price have decreased slightly by -0.1% in February 2019 compared with the previous month.

OVERVIEW OF CPI MOVEMENTS IN February 2019

• The most significant price decreases during February 2019 were in Food group by -0.6%, Transport and Recreation -0.5% each. In contrast, Miscellaneous prices increased by 1.4%, Furnishings and Restaurant & Hotels 0.1% each, while the rest of the groups did not record any changes this month.
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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.

 

[2] The effect of January 2018 implementation of VAT in Saudi Arabia and UAE no longer impact the comparison over 12 months’ period, reducing the annual inflation from 4.3% (Dec 2018) to 0.0% (Jan 2019).