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Sun 29 Aug 2010 03:24 PM

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Qatar July consumer prices decline 2.9% on housing

Rent, fuel and energy prices declined 15.3% in July, versus same month last year.

Qatar July consumer prices decline 2.9% on housing
CONSUMER PRICES: Qatar, which had inflation of as high as 15 percent in 2008, predicts prices will rise 1 percent this year.(Getty Images)

Qatar consumer prices fell in July for the seventh consecutive month this year on lower housing and fuel costs in the world’s largest exporter of liquefied natural gas.

Consumer prices fell 2.9 percent in July, compared with a 2.8 percent decline in June, the Qatar Statistics Authority said on its website on Sunday.

Rent, fuel and energy prices declined 15.3 percent in July, compared with the same month last year, the data showed.

Qatar cut the overnight deposit rate by 50 basis points, or 0.5 percentage point, to 1.5 percent on Aug. 11.

The rate was last cut in May 2008 when Qatar trimmed it 25 basis points to 2 percent.

The decision to cut the overnight deposit rate was prompted by deflation in the country and low borrowing costs worldwide, the central bank said.

Qatar, which had inflation of as high as 15 percent in 2008, predicts prices will rise 1 percent this year.

The Qatar Statistics Authority also shifted the base year for its consumer price index to 2007 from 2006, according to the authority’s statement on Sunday.

The move was meant to comply with a recommendation by the Gulf Cooperation Council for members to use 2007 as the base year. (Bloomberg)

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