Qatar records highest annual inflation rates in the GCC
Qatar recorded an inflation rate of 3.8% by the end of August 2014, as compared to the same month last year, making it the highest in the GCC region.
The report was released by the Statistical Centre for the Co-operation Council for the Arab Countries of the Gulf (GCC-Stat). According to the report, the annual inflation rates in the GCC region ranged between 1.06% and 3.8% by the end of August 2014. Qatar topped its GCC counterparts with a rate of 3.8%, followed by Bahrain with 3.1%, then Saudi Arabia with 2.8%, Kuwait with 2.71%, the UAE with 2.42% and Oman with 1.06%, the Gulf Daily News has reported. (Read the full report here.)
While comparing figures with July 2014, it was noted that the inflation rates rose by 0.7% in Qatar, 0.4% in both Saudi Arabia and the UAE, 0.25% in Oman, 0.1% in Bahrain, and 0.08% in Kuwait.
The main categories in the price index that witnessed a steep increase were housing for Qatar (7.9%), utilities for Bahrain (5.4%), tobacco prices for Kuwait (12.42%), and culture and recreation for Saudi Arabia (10.9%).
Residents in Qatar have long been struggling with rising costs in house rents. The steep rise in rents has been attributed to the increasing costs of land value and construction. According to market experts, this escalation will continue at an average of 10% per year until 2022.