Qatar's CPI drops in October 

(MENAFN) Qatar's statistics authority reported that the country's Consumer Price Index (CPI) fell 0.1 percent in October from the previous month, continuing its downward trend since the beginning of the year, Reuters reported.

The authority said that Qatar's CPI currently stands at 122.3, down 4.8 percent from the start of 2009. It reported that food prices dropped 2.3 percent in October, compared to a month earlier. Rents dropped by an overall 3.3 percent and are now 13.8 percent lower than prices in January 2009.

The real estate sector has been a key driver of inflation in Qatar over the last few years, and with the increase in housing supply, rental prices have dropped sharply through the year, resulting in negative inflation, said Monica Malik, an economic analyst in Dubai.

Malik said that while real estate prices are expected to stabilize in 2010, the main driver for inflation next year will be an external factor including the US dollar weakness.

Earlier this month, Qatar's emir Sheikh Hamad bin Khalifa Al-Thani said that the country's economy is seen to outpace other Gulf economies, and would grow by 9 percent this fiscal year and by 16 percent next year.