The prices of consumer goods and services in the GCC countries increased by 0.1% over the 12 months to March 2019

Issue date: 13 May 2019

 

The prices of consumer goods and services (excluding housing)[1] in the Gulf Cooperation Council countries increased by 0.1% Over the 12 months to March 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 increases were for Tobacco 2.7%, Education 1.7%, Restaurant & Hotels 1.4%, Furnishings 0.9%, Clothing and Footwear 0.8%, Food 0.7% and Health 0.2%. In contrast, Transport decreased by -2.5%, Recreation -0.6%, Communication -0.5%, and Miscellaneous -0.3%.

In terms of contributions, Food group contributed 0.2 percentage points, Clothing and Footwear, Furnishings, Education and Restaurant & Hotels contributed 0.1 percentage points each.
 In contrast, Transport group contributed -0.4 percentage points, 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 March 2019 Saudi Arabia and Kuwait contributed 0.1 percentage points each. In contrast UAE 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 March 2019 compared with the previous month by -0.1%. The most significant price decreases during March 2019 were in Recreation and Miscellaneous by -0.6% each, Clothing and Footwear -0.4%, Furnishings -0.3% and Health -0.1%. In contrast, Transport prices increased by 0.5%, 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	March 2018	February 2019	March 2019		March 2019/         February 2019	March 2019/          March 2018
Food and beverage		24.0%	147.9	149.0	148.9		0.0	0.7
Tobacco		0.7%	277.8	285.4	285.4		0.0	2.7
Clothing and footwear		7.5%	108.7	110.1	109.7		-0.4	0.8
Furnishings, household equipment		10.5%	134.8	136.4	136.0		-0.3	0.9
Health		2.7%	120.2	120.4	120.4		-0.1	0.2
Transport		16.8%	135.9	131.8	132.5		0.5	-2.5
Communication		9.5%	95.1	94.6	94.6		0.0	-0.5
Recreation and culture		5.2%	114.3	114.3	113.6		-0.6	-0.6
Education		7.4%	155.4	158.0	158.0		0.0	1.7
Restaurants and hotels		7.5%	144.3	146.4	146.4		0.0	1.4
Miscellaneous		8.3%	137.7	138.1	137.3		-0.6	-0.3
All Groups Excluding Housing		100.0	134.4	134.6	134.5		-0.1	0.1

GCC CONSUMER PRICE CHANGE, MARCH 2019

 

 

 

KEY POINTS: March 2018 to March 2019

 THE GCC ALL GROUPS EXCLUDING HOUSING

• The prices of consumer goods and services (excluding housing) in the Gulf Cooperation Council countries was increased by 0.1% Over the 12 months to March 2019.
• The most significant price increases over the twelve months were for Tobacco7%, Education 1.7%, Restaurant & Hotels 1.4%, Furnishings 0.9%, Clothing and Footwear 0.8%, Food 0.7% and Health 0.2%. In contrast, Transport decreased by -2.5%, Recreation -0.6%, Communication -0.5%, and Miscellaneous -0.3%.

 

 CONTRIBUTIONS TO PRICE CHANGE OVER THE 12 MONTHS

• The most significant contributors to the GCC Inflation(excluding housing) were:
  • Food group contributed 0.2 percentage points.
  • Clothing and Footwear, Furnishings, Education and Restaurant & Hotels contributed 0.1 percentage points each.
  • Transport group contributed -0.4 percentage points.
  • While the rest of the groups did not record any contribution this month.

 

• At the country level:
  • Saudi Arabia and Kuwait contributed 1 percentage points each.
  • UAE contributed -0.1 percentage points.
  • While the rest of the GCC countries did not record any contribution this month.

 

KEY POINTS: February 2019 to March 2019

THE GCC ALL GROUPS EXCLUDING HOUSING

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

OVERVIEW OF CPI MOVEMENTS IN March 2019

• The most significant price decreases during March 2019 were in Recreation and Miscellaneous by -0.6% each, Clothing and Footwear -0.4%, Furnishings -0.3% and Health -0.1%. In contrast, Transport prices increased by 0.5%, while the rest of the groups did not record any changes this 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.

 

[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).