The prices of consumer goods and services in the GCC countries increased by 0.5% in 2019 compared to 2018

                

Issue date: 2 February 2020

 

 

The prices of consumer goods and services (excluding housing)[1] in the Gulf Cooperation Council countries increased by 0.5% in 2019 compared to 2018, 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 Recreation 3.9%, Tobacco 2.8%, Education 1.5%, Restaurant & Hotels 1.4%, Furnishings 1.2%, Health 0.7%, Food and Miscellaneous 04% each. In contrast, Transport decreased by -1.2%, Clothing and Footwear -0.9% and Communication -0.2%.

In terms of contributions, Recreation group contributed 0.2 percentage points, Food, Furnishings, Education and Restaurant& Hotels contributed 0.1 percentage points each. In contrast, Transport contributed -0.2 percentage points, Clothing and Footwear contributed -0.1 percentage points, while the rest of the groups did not record any contribution this year.

In terms of contributions to overall GCC consumer price change in 2019 Saudi Arabia contributed 0.34 percentage points, Kuwait contributed 0.16 percentage points, Bahrain 0.03 percentage points, Oman and Qatar 0.01 percentage points each. In contrast UAE contributed -0.08 percentage points.

The sources indicate that consumer prices in the GCC countries without the housing group in 2019 compared to the previous year witnessed a rise in each of the State of Kuwait by 2.0%, the Kingdom of Bahrain 0.8%, the Kingdom of Saudi Arabia 0.7%, the Sultanate of Oman 0.2%, and the State of Qatar 0.1%, in On the other hand, consumer prices without housing group in the United Arab Emirates decreased by -0.3%.

 

 

	Table 1. Aggregate GCC inflation
			Index points, 2007=100				Change, Percent
Main Groups		Weights Per cent	2017	2018	2019		2018	2019
Food and beverage		24.0%	143.1	149.2	149.9		4.3	0.4
Tobacco		0.7%	221.8	287.8	295.9		29.8	2.8
Clothing and footwear		7.5%	110.4	109.7	108.7		-0.7	-0.9
Furnishings, household equipment		10.5%	131.9	134.9	136.5		2.3	1.2
Health		2.7%	117.1	120.0	120.9		2.5	0.7
Transport		16.8%	125.1	137.0	135.3		9.5	-1.2
Communication		9.5%	93.1	94.7	94.6		1.7	-0.2
Recreation and culture		5.2%	110.9	114.2	118.6		2.9	3.9
Education		7.4%	150.9	155.0	157.4		2.7	1.5
Restaurants and hotels		7.5%	141.8	150.3	152.4		6.0	1.4
Miscellaneous		8.3%	134.3	136.8	137.3		1.8	0.4
All Groups Excluding Housing		100.0	129.7	135.4	136.0		4.4	0.5

GCC CONSUMER PRICE 2017-2019

 

 

 

KEY POINTS: 2018 to 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 0.5% in 2019 compared to the previous year.
• The most significant price increases in 2019 compared to the previous year were for Recreation 3.9%, Tobacco8%, Education 1.5%, Restaurant & Hotels 1.4%, Furnishings 1.2%, Health 0.7%, Food and Miscellaneous 04% each. In contrast, Transport decreased by -1.2%, Clothing and Footwear -0.9% and Communication -0.2%.

 

 CONTRIBUTIONS TO PRICE CHANGE IN 2019 compared to the previous year

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

 

• At the country level:
  • Saudi Arabia and Kuwait contributed 34, 0.16 percentage points respectively.
  • Bahrain contributed03 percentage points.
  • Oman and Qatar 0.01 percentage points each.
  • UAE contributed -0.08 percentage points.

KEY POINTS: GCC COUNTRIES INFLATION WITHOUT HOUSING 2019

• The sources indicate that consumer prices in the GCC countries without the housing group in 2019 compared to the previous year witnessed a rise in each of the State of Kuwait by 2.0%, the Kingdom of Bahrain 0.8%, the Kingdom of Saudi Arabia 0.7%, the Sultanate of Oman 0.2%, and the State of Qatar 0.1%, in On the other hand, consumer prices without housing group in the United Arab Emirates decreased by -0.3%.

 

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.