Garments, food push up Qatar’s living costs
Garments, food push up Qatar’s living costs
By Santhosh V Perumal/Business Reporter
Qatar’s cost of living, based on consumer price index (CPI), rose 1.10% year-on-year (y-o-y) in April mainly due to costlier food, garments and entertainment, according to official figures.
The CPI for April 2012 stood at 109.9 points, showing stability for the second consecutive month on a month-on-month comparison, said the Qatar Statistics Authority (QSA) data.
According to the International Monetary Fund, Qatar’s average inflation is expected to be 4%-5% in the medium term and risks related to it have risen due to an increase in public sector wages.
The government had last year announced a 60% increase in the basic salary and social allowance for state civilian employees, a 120% rise for military personnel of officer ranks and a 50% increase for military personnel of other ranks. In addition, the pension of civilian retirees will increase by 60%, while the pension of retired military officers will rise by 120% and of other ranks by 50%.
Food, beverages and tobacco, which has a weight of 13.20% in the CPI basket, surged 3.80% y-o-y in April and it was up 0.20% from March.
Furniture, textiles and home appliances, which has a weight of 8.20% in the CPI basket, saw its group index rise 1.10% month-on-month in April and it reported a steep 5.10% rise y-o-y.
Food price in global commodity markets remains near historic highs and in the Gulf Cooperation Council (GCC) region, retail food prices continue to trend upwards, a QNB Group report recently said, forecasting 4.1% food inflation in the region this year.
Entertainment, recreation and culture, which carry a weight of 10.90% in the CPI basket, saw its group index shoot up 6.40% y-o-y in April and it was up 0.40% from the previous month.
Miscellaneous goods and services, which carry 7.20% weight in the CPI basket, saw its group become costlier by 6.50% y-o-y in April, even as it fell 0.60% from the previous month.
Garments and footwear, which carry 5.80% in the CPI basket, saw their price spurt 3.70% y-o-y in April whereas it was down 0.30% from March 2012.
Transport and communication, which has a weight of 20.50% in the CPI basket, witnessed its index gain 1.30% y-o-y in April.
The index was unchanged from the previous month’s level.
Medical care and medical services group, which has 2% weight, reported a 1.60% increase y-o-y in April and was up 0.40% from the previous month.
However, rent, fuel and energy group, which is the most influential and carry the maximum weight of 32.20% in the CPI basket, saw its index dip 0.5% month-on-month in April. The index tanked 6.20% y-o-y.
“After eliminating the effect of rent, the overall index shows an increase of 0.20% compared to the CPI of March 2012, and an increase of 3.80% when compared to April 2011,” the QSA spokesman said.
http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=505968...
At least some of us have been benefiting from falling rents, to help offset price rises elsewhere.
Ultimately you are right MIMH. Salary hikes, such as the one given to the nationals, did little more than trigger inflation. Extending it to expats would make the situation worse.
We all know how overpriced many commodities are in Doha, with daily stories in the Gulf Times about why the CPD can do little to monitor the price rises of fruit, vegetables, car washes, restaurant meals etc.
Even many nationals have complained about the high cost of airfares on Qatar Airways - we all know that they have simply increased their prices to reflect the increased purchasing power of nationals, now flush with an extra 60% salary!
Proper competition will do much more than any other measure to cope with the cost of living.
In such a small market a hike in expat salaries will only fuel more inflation. What they need to do to cope with inflation is to allow more free enterprise but that would mean removing the 51% Qatari ownership rules. I can't see them doing that anytime soon....
In the past year alone garments and food have become quite expensive and the prices keep souring. Specially when essentials go up in rate, and your income stays pretty much the same, not to mention the already high price of school fees, electricity and water, etc, maintaining a family life is quite a strain on many,so I fervently hope we'll see some relief soon,Insha Allah.
Was quite miffed myself to see a certain food product I buy often being hiked up by nearly 5QRS in just a month, with the supermarket carrying it brightly placing a board next to the stocks saying:"Best deal"..yeah right!
In many large companies salaries and salary grades are fixed. The threat of resignation is meaningless to most bosses who can do little to assist.
I believe there were plans underway to revise the salary grades for all the Q-Companies, but instead it was decided to give the nationals the 60% pay rise and keep ex-pat salaries on hold.
C'est la vie.
unfortunately I have seen many expatriates handing over the resignation and the company's response (to all I know) has been: "farewell, we wish you success".
I have not seen any change nor heard anything on "expatriates salary revision" to cope with the higher costs.
UKeng your statement is the reality now in place and it will be even worst in the nearby future (for sure) despite all efforts to cover up for the situation.
Regards!!
in Qatar, the only way for expats to get an increase is the threat of resignation..
Most government try to underplay inflation and I see nothing different here.
While they gave the native a 60% increase in the salaries no increase was given to Expats and now we have further talk of cost cutting and staff reduction to cover the bill for the 60% salary hikes.
Someone really needs to make sure that the salaries are comparatives with inflation, else people will not be able to spend and the businesses with suffer.