Qatar's Inflation to Rise to 1.6% in 2025, Says ICAEW Report

Qatar's consumer price index (CPI) inflation is projected to increase to an average of 1.6% in 2025, according to a report by the Institute of Chartered Accountants of England and Wales (ICAEW). This is up from 1.1% the previous year. The ICAEW report, prepared by Oxford Economics, noted that survey data indicated mild inflation in January. Firms are reportedly absorbing rising input costs instead of passing them on to consumers, prioritizing increased sales volume. The International Monetary Fund (IMF) stated in its latest Article IV report that Qatar's headline inflation would likely ease to 1% in 2024 and converge to around 2% over the medium term. The ICAEW report also indicated that policy easing by the Qatar Central Bank (QCB) will be slower. This is due to expectations that the US Federal Reserve will maintain its policy until December, when a 25 basis points (bps) rate cut is anticipated. The IMF reported that inflation in Qatar decreased from 5% in 2022 to 3% in 2023. It further decelerated to 1.2% in 2024 through October, as rent and recreation services inflation weakened. Producer price and wage inflation remained contained.