remember that the inflation rate is measured against a basket of goods and services. In Qatar rent is a major component of the basket, rental falls of 20 to 30% make a huge difference in the year to year rate of inflation. Add that the dollar/Riyal had fallen significantly against the euro and pound sterling (now rising again unfortunately) and accordingly imported goods from Europe were cheaper. Add that the lack of demand from countries more affected by the global recession has depressed many prices for basic commodities. Some items will still continue to rise in the local market as traders struggle to catch up with their past increases in costs but this pressure will decrease gradually. The economist had access to figures which I don't have but it is probably correct to say that inflation measured in a statistical methodology is very low. Only time will tell!
remember that the inflation rate is measured against a basket of goods and services. In Qatar rent is a major component of the basket, rental falls of 20 to 30% make a huge difference in the year to year rate of inflation. Add that the dollar/Riyal had fallen significantly against the euro and pound sterling (now rising again unfortunately) and accordingly imported goods from Europe were cheaper. Add that the lack of demand from countries more affected by the global recession has depressed many prices for basic commodities. Some items will still continue to rise in the local market as traders struggle to catch up with their past increases in costs but this pressure will decrease gradually. The economist had access to figures which I don't have but it is probably correct to say that inflation measured in a statistical methodology is very low. Only time will tell!