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Inflation accelerated to 1.7% y-o-y in September, up from 1.6% in August, according to the latest figures from the General Authority for Statistics (Gastat) (pdf). September’s reading marks the highest inflation rate since February. On a monthly basis, prices inched up 0.1%, driven by a 0.8% uptick in housing rents and prices.
IN CONTEXT- Inflation peaked this year in February at 1.8%. Consumer prices have since grown at a steady 1.6% each month from March through to May, before dipping slightly to a seven-month low at 1.5% in June and July.
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Once again, rent drove the increase: House rental prices — the heaviest weighted component in the domestic consumer basket — rose 11.2% y-o-y last month, fueled by a 10% surge in apartment rentals. This led to a 9.3% y-o-y increase in the prices of housing, water, electricity, gas and other fuels.
Also getting more expensive: Restaurant and hotel rates rose 1.7% y-o-y on the back of a 1.5% increase in catering prices. Education tuition and fees grew 1.6% y-o-y, due to a 3.8% hike in intermediate and secondary school fees. Food and beverage prices were up 0.8% y-o-y driven by a 5.2% increase in vegetable prices.
On the more affordable end: Furnishing and home equipment prices fell 3.7% y-o-y on the back of a 7% drop in the price of carpets, flooring, and furniture. The cost of transportation was down 3.3% y-o-y dragged by a 4.5% decline in car prices. Clothing and footwear prices dropped by 3.2% y-o-y, on the back of a 5.5% decrease in the price of ready-made clothes.
MEANWHILE- Producer prices rose 3.1% y-o-y in September on the back of a 12% increase in the prices of basic chemicals and refined petroleum products, according to Gastat’s wholesale price index (pdf). Meanwhile, September wholesale prices were up 0.3% m-o-m.
Dive deeper into Gastat’s full report on September’s average prices of goods and services here (pdf).
