The prices of consumer goods and services in the GCC countries increased by 0.2% over the 12 months to July 2019

Issue date: 15 September 2019

The prices of consumer goods and services (excluding housing)[1] in the Gulf Cooperation Council countries increased by 0.2% Over the 12 months to July 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 Recreation 4.6%, Tobacco 2.8%, Education 1.7%, Furnishings 1.0%, Restaurant & Hotels 0.9%, Health 0.7%, Miscellaneous 0.4% and Communication 0.1%. In contrast, Transport decreased by -1.5%, Clothing and Footwear-1.4% and Food -0.3%.

In terms of contributions, Recreation group contributed 0.2 percentage points, Furnishings, Education and Restaurant & Hotels contributed 0.1 percentage points each. In contrast, Transport contributed -0.3 percentage points, Food and Clothing and Footwear 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 July 2019 Saudi Arabia contributed 0.27 percentage points, Kuwait contributed 0.17 percentage points, Oman 0.03 percentage points and Qatar 0.01 percentage points. In contrast UAE contributed -0.28 percentage points and Bahrain -0.02 percentage points.

GCC overall consumer price have decreased slightly in July 2019 compared with the previous month by -0.2%. The most significant price decreases during July 2019 were in Transport by
-1.4%, Restaurant & Hotels -1.3%, Clothing and Footwear -0.2%. In contrast, Tobacco and Recreation prices increased by 0.8% each, Health 0.5%, Miscellaneous 0.4%, Food and Furnishings 0.2% each, while the rest of groups did not record any changes this month.

 

	Table 1. Aggregate GCC inflation
			Index points, 2007=100				Change, Percent
Main Groups		Weights Per cent	July 2018	June 2019	July 2019		July 2019/         June 2019	July 2019/          July 2018
Food and beverage		24.0%	149.9	149.0	149.4		0.2	-0.3
Tobacco		0.7%	288.4	294.2	296.4		0.8	2.8
Clothing and footwear		7.5%	109.9	108.6	108.4		-0.2	-1.4
Furnishings, household equipment		10.5%	134.9	136.1	136.3		0.2	1.0
Health		2.7%	120.3	120.5	121.2		0.5	0.7
Transport		16.8%	138.9	138.7	136.8		-1.4	-1.5
Communication		9.5%	94.5	94.6	94.6		0.0	0.1
Recreation and culture		5.2%	115.7	120.0	121.0		0.8	4.6
Education		7.4%	154.3	156.9	156.9		0.0	1.7
Restaurants and hotels		7.5%	150.4	153.7	151.7		-1.3	0.9
Miscellaneous		8.3%	137.2	137.2	137.8		0.4	0.4
All Groups Excluding Housing		100.0	136.0	136.5	136.2		-0.2	0.2

GCC CONSUMER PRICE CHANGE, JULY 2019

 

 

 

 

KEY POINTS: July 2018 to July 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 0.2% Over the 12 months to July 2019.
• The most significant price increases over the twelve months were for Recreation 4.6%, Tobacco8%, Education 1.7%, Furnishings 1.0%, Restaurant & Hotels 0.9%, Health 0.7%, Miscellaneous 0.4% and Communication 0.1%. In contrast, Transport decreased by -1.5%, Clothing and Footwear-1.4% and Food -0.3%.

 

 CONTRIBUTIONS TO PRICE CHANGE OVER THE 12 MONTHS

• The most significant contributors to the GCC Inflation(excluding housing) were:
  • Recreation group contributed 0.2 percentage points.
  • Furnishings Education and Restaurant & Hotels contributed 0.1 percentage points each.
  • Transport group contributed -0.3 percentage points.
  • Food and Clothing and Footwear contributed -0.1 percentage points each.
  • While the rest of the groups did not record any contribution this month.

 

• At the country level:
  • Saudi Arabia and Kuwait contributed 27, 0.17 percentage points respectively.
  • Oman and Qatar contributed 03, 0.01 percentage points respectively.
  • UAE and Bahrain contributed -0.28, -0.02 percentage points respectively.

 

KEY POINTS: June 2019 to July 2019

THE GCC ALL GROUPS EXCLUDING HOUSING

• GCC consumer price have decreased slightly by -0.2% in July 2019 compared with the previous month.

OVERVIEW OF CPI MOVEMENTS IN July 2019

• The most significant price decreases during July 2019 were in Transport by
  -1.4%, Restaurant & Hotels -1.3%, Clothing and Footwear -0.2%. In contrast, Tobacco and Recreation prices increased by 0.8% each, Health 0.5%, Miscellaneous 0.4%, Food and Furnishings 0.2% each, while the rest of 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).