(MENAFN- The Peninsula) Qatar's inflation rose to 3.5 percent in the third quarter of 2014 on year-on-year basis triggered by rentals, data released by the Ministry of Development Planning and Statistics reveal.
According to the Consumer Price Index (CPI) report for Q3, 2014, increases were recorded in all major groups of commodities and services in varying degrees.
The highest increase was recorded in 'rentals, fuel and energy' group, of 7.9 percent. The group represents 32 percent weight in the consumer price index. The prices of items in the 'furniture, textile and home appliances'category rose by 5.2 percent in Q3, 2014, compared to a year ago.
The rentals have been driving up the overall price inflation based on CPI, the Ministry report said yesterday.
Goods that come under the clothing and footwear' group became costlier by 2.8 percent compared to a year ago. Services under transport and communications category rose by 2.3 percent.
Quarter-on-quarter comparisons show rentals and prices of fuel and energy topped the list, which increased by 1.6 percent in Q3, 2014, compared to the prices in Q2, 2014 followed by the index of 'transport and communication', that became 1.1 percent costlier in Q3, 2014 against the index of Q2, 2014.
On quarter-on-quarter basis comparisons, the CPI in Q3, 2014, touched 118.6 compared to 117.6 in the previous quarter Q2, showing an increase of 0.9 percent.
The index number of 'food, beverage and tobacco' group topped the list in Q3 which stood at 137.7, showing a 0.3 percent quarter-on-quarter rise and a 0.4 percent rise on annual basis.
It was followed by miscellaneous goods and services group with an index of 135.9 and clothing and footwear with an index of 120.1. At the bottom were medical care and health services with an index of 117.9.
The CPIs are index numbers that measure changes in the prices of goods and services purchased or otherwise acquired by households to satisfy their own needs and wants.
Qatar's headline inflation is forecast to accelerate from an expected annual average of 3.1 percent in 2014 to 3.4 percent and 4.1 percent in 2015 and 2016, respectively.
Steady rise in rentals, which stood at 8.2 percent year-on-year last October, are expected to remain the main driving force of inflation.
Industry sources say that housing rents are likely to feature significantly as an inflationary impulse during the next two years as a result of limited supply of residential housing units and burgeoning population growth, which is expected to be close to 10 percent year-on-year by year-end 2014.
Data suggest the country's real estate price index, which tracks the price of land, villas and apartments in the country, increased by a record 42 percent y-o-y last September.
Prices are expected to continue to rise given the premium commanded by land in the context of the country's ambitious infrastructure development plan.
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