Qatar: Inflation falls to three-year low in March
Inflation came in at 1.0% in March, which was down from February’s 2.7%. The reading represented the lowest inflation rate since March 2021. The deceleration was largely due to a smaller rise in food prices, which, in turn, was likely due to the government discounting over 900 consumer goods during Ramadan. Ramadan started on 10 March in 2024, as opposed to 23 March in 2023, meaning that the discount took effect for more of the month this year than last, reducing the year-on-year increase in food prices in turn.
Accordingly, annual average inflation fell to 2.5% in March (February: 2.8%).
Finally, consumer prices dropped 1.40% in March over the previous month, coming in below the 0.34% drop logged in February. March’s result marked the weakest reading since January 2023.
Our panelists expect inflation to average lower in 2024 than in 2023, weighed on by government subsidies, the delayed effect of past interest rate hikes and lower global commodity prices. That said, strong domestic demand growth will keep inflation above the 10-year average of 1.5%, with prices for recreation and culture having risen consistently at double-digit rates since the run-up to the FIFA World Cup in 2022.