The prices of consumer goods and services in the GCC countries were stable over the 12 months period to January 2019

           

Issue date: 14 March 2019

 

The overall prices of consumer goods and services (excluding housing)[1] in the Gulf Cooperation Council countries were stable over the 12 months to January 2019, 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 2.9%, Education 1.8%, Restaurant & Hotels 1.6%, Furnishings 1.4%, Clothing and Footwear 1.3%, Food and Health 0.4% each. In contrast, Transport declined by -2.8%, Miscellaneous -1.3%, Communication -0.5% and Recreation -0.1%.

In terms of contributions, Food, Clothing and Footwear, Furnishings, Education and Restaurant & Hotels contributed 1.0 percentage points each. In contrast, Transport group contributed -0.5 percentage points and Miscellaneous -0.1 percentage points each, while the rest of the groups did not record any contribution this month.

Over the 12 months to January 2019, the contributions to overall GCC consumer price change were almost exclusively from Saudi Arabia and Kuwait, with 0.1 percentage points each. UAE contributed -0.2 percentage points, while the rest of the GCC countries did not record any contribution this month.

GCC overall consumer prices have decreased slightly by 0.1% in January 2019 compared with the previous month. The most significant price decreases during January 2019 were in Transport group by – 2.3%, and Clothing -0.4%. In contrast, Tobacco prices increased by 1.9%, Furnishings 1.2%, Recreation 0.9%, Restaurant & Hotels 0.5%, Food, Communication and Miscellaneous 0.3% each and Education 0.1%, while there is no change of prices in Health group compared with the previous month.

 

	Table 1. Aggregate GCC inflation
			Index points, 2007=100				Change, Percent
Main Groups		Weights Per cent	January 2018	December 2018	January 2019		January 2019/       December 2018	January 2019/        January 2018
Food and beverage		24.0%	149.4	149.6	149.9		0.3	0.4
Tobacco		0.7%	277.6	280.3	285.5		1.9	2.9
Clothing and footwear		7.5%	108.7	110.6	110.1		-0.4	1.3
Furnishings, household equipment		10.5%	134.5	134.7	136.3		1.2	1.4
Health		2.7%	120.0	120.4	120.4		0.0	0.4
Transport		16.8%	136.3	135.5	132.4		-2.3	-2.8
Communication		9.5%	95.1	94.3	94.6		0.3	-0.5
Recreation and culture		5.2%	115.0	113.8	114.8		0.9	-0.1
Education		7.4%	155.3	157.9	158.0		0.1	1.8
Restaurants and hotels		7.5%	143.9	145.5	146.2		0.5	1.6
Miscellaneous		8.3%	138.0	135.8	136.2		0.3	-1.3
All Groups Excluding Housing		100.0	134.8	134.9	134.8		-0.1	0.0

GCC CONSUMER PRICE CHANGE, January 2019

 

 

 

KEY POINTS: January 2018 to January 2019

 THE GCC ALL GROUPS EXCLUDING HOUSING

• The prices of consumer goods and services (excluding housing) in the Gulf Cooperation Council countries was stable over the 12 months to January 2019.
• The most significant price rises over the twelve months were for Tobacco 2.9%, Education 1.8%, Restaurant & Hotels 1.6%, Furnishings 1.4%, Clothing and Footwear 1.3%, Food and Health 0.4% each. In contrast, Transport declined by -2.8%, Miscellaneous -1.3%, Communication -0.5% and Recreation -0.1%.
• 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).

 

 CONTRIBUTIONS TO PRICE CHANGE OVER THE 12 MONTHS

• The most significant contributors to the GCC Inflation (excluding housing) were:
  • Food, Clothing and Footwear, Furnishings, Education and Restaurant & Hotels contributed 0.1 percentage points each.
  • In contrast, Transport group contributed -0.5 percentage points and Miscellaneous -0.1 percentage points each.

 

[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.