Jordan’s economy to expand by 2.7% in 2025: Central Bank governor

RIYADH: Qatar’s inflation eased by 1.15 percent year on year in January, with the consumer price index settling at 107.45 points, driven by declines in food, housing, and transport costs, official figures showed. 

According to the National Planning Council’s latest report, the monthly CPI also dropped by 2.53 percent, primarily due to a decline in housing, water, electricity, and other fuels — which fell by 2.53 percent from December. 

The slide comes as Qatar is projected to record the lowest inflation in the Gulf Cooperation Council region this year, averaging 1.4 percent — below the GCC’s 1.9 percent and the wider Arab region’s 8.5 percent, according to Kamco Invest.

The International Monetary Fund expects Qatar’s inflation to stabilize around 2 percent over the medium term, supported by LNG expansion, public investment, and a strengthening tourism sector, according to a release in February.

The National Planning Council’s report stated: “Reviewing the main changes in the CPI for the month of January 2025 compared with the previous month, findings show five categories decreased, six categories increased, and stability in one category.”

Food and beverage prices recorded a 2.75 percent monthly drop, while recreation and culture saw the sharpest decline at 14.87 percent. Clothing and footwear prices fell by 1.13 percent, and furniture and household equipment dipped 0.77 percent. The restaurants and hotels sector also saw a slight decrease of 0.55 percent. 

Conversely, several categories recorded price increases including miscellaneous goods and services which rose by 1.93 percent, health by 0.91 percent, and transport by 0.61 percent. 

Housing, water, electricity, and other fuels saw a slight uptick of 0.11 percent, while communication and education prices remained relatively stable, with marginal increases of 0.09 percent and 0.02 percent, respectively. Tobacco prices remained unchanged. 

Year-on-year figures showed notable shifts across key sectors, with the annual CPI declining by 1.15 percent. 

The drop was mainly driven by a 5.44 percent decrease in food and beverage prices, while housing, water, electricity, and other fuels fell by 4.67 percent. 

Recreation and culture recorded a decline of 4.29 percent, followed by restaurants and hotels, which dropped by 1.82 percent. 

Furniture and household equipment fell by 1.73 percent, while transport costs were down by 1.01 percent. 

At the same time, miscellaneous goods and services surged 7.92 percent, communication saw a sharp increase of 18.68 percent, and clothing and footwear rose 1.91 percent. 

Education costs climbed 1.70 percent, while health recorded a slight increase of 0.04 percent. 

The CPI excluding housing, water, electricity, and other fuels stood at 111.76 points in January, reflecting a monthly decline of 3.09 percent and an annual drop of 1.80 percent. 

Despite the minor downward adjustments across multiple sectors, the council emphasized that consumer prices remain stable, with inflation largely contained within expected levels. 

KARACHI: Khadeeja Manzoor haggled with a vendor at a busy market in Pakistan’s Karachi over the price of vegetables. The sight is not an unusual one in Pakistan, especially during the holy month of Ramadan, where people flock to fruit and vegetable markets in thousands daily to buy food items. 

Muslims break their fast with the evening iftar meal during the holy month of Ramadan, consuming dishes prepared with fruits and vegetables in large amounts. This triggers a surge in consumer spending significantly during the holy month, one that increases sales at grocery stores and marketplaces.

“Our spending increases during Ramadan,” Manzoor, 45, told Arab News. “They (actually) double because though the prices of vegetables have declined a bit, other things have become costlier,” she added. 

Pakistan has long grappled with an economic crisis that saw inflation surge to a historic 38 percent in May 2023. However, the government has since then achieved some economic gains, with the country’s monthly inflation rate dropping to 1.5 percent in February on a year-on-year basis.

Dry fruit seller Wasib Abbasi noted that people spent more on items such as Rooh Afza, a sugary drink considered a staple Ramadan diet, and dates during the holy month. This causes a surge in sales during Ramadan, he added. 

“Our sales remain normal during the first 15 days of Ramadan but significantly increase during the second half,” Abbasi, who runs a store selling dry fruits at the busy Empress Market, told Arab News. 

Financial analyst Muhammad Waqas Ghani agrees the increased demand for food items and the increased inflow of remittances to Pakistan during Ramadan supplements the country’s economic growth. He said Pakistan usually sees a rise of 20 percent in remittances during the holy month every year. 

Remittances are a lifeline for Pakistan’s cash-strapped economy, playing a critical role in stabilizing foreign exchange reserves and supporting its balance of payments. Overseas Pakistanis remitted $3.1 billion in February.

“Ramadan does have a significant economic angle. Demand rises in food, lifestyle, and other areas like footwear,” Ghani, the head of research at JS Global Capital Ltd., a commodities brokerage company, told Arab News. 

During Ramadan, commercial banks also deduct billions of rupees from people’s accounts on account of the annual Islamic charity, Zakat. 

Ghani said the circulation of Zakat funds among the masses also increases their purchasing power, which leads to more consumer spending. 

Atiq Mir, chairman of the All Karachi Tajir Ittehad (AKTI), a body of over 400 trade groups in the southern port city, described Ramadan as the “spring month” for traders and citizens alike in terms of both divine blessings and material gains.

“The way people come to bazaars with their children gives a good look,” Mir said, adding that trade “runs above normal” during the holy month.

“Given the size of its population, Karachi alone is a Rs100 billion market if people came out proportionately for Eid shopping only.”