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FINANCIAL NEWS
Qatar’s inflation at 3 percent in 2014
18 Jan 2015
(MENAFN) According to the Qatari Ministry of Development Planning and Statistics (MDPS), inflation in Qatar remained in a moderate level in 2014, remaining stable at 3 percent in 2014 compared with 3.1 percent in 2013, due to lower international food prices, QNA reported.
The country’s inflation in 2014 was mostly affected by higher rent which offset the decline in international food prices, with expectations that the domestic inflation will accelerate, pushing inflation higher to 3.5 percent in 2015 and 4.4 percent in 2016.
The report also indicated that the combination of rapid population growth, which is estimated to have risen by 10.1 percent in 2014, and higher GDP led to a strong increase in land prices, increasing by 92.7 percent in December compared with the same period in 2013.
Accordingly, rent inflation rose to an average 7.0 percent in 2014, leading to overall domestic inflation of 3.3 percent, with the trend expected to continue over the coming years, resulting in domestic inflation to rise to 5.0 percent in 2015 and 5.3 percent in 2016.
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