Average Inflation Up by a yearly 4.44% in 2017

According to the Central Administration of Statistics (CAS), average inflation increased by a yearly 4.44% by December 2017, compared to an average deflation rate of 0.78% recorded by Dec. 2016.

All sub sections of the Consumer price index (CPI) recorded yearly upticks in 2017. In details, average prices of food and non-alcoholic beverages (20% of CPI) rose by an annual 3.67% by Dec. 2017.

The average costs of “Housing and utilities” (including: water, electricity, gas and other fuels), which grasped a combined 28.4% of the CPI, rose by 5.18% year-on-year (y-o-y) by the end of 2017. Specifically, “Owner-occupied” rental costs constituted 13.6% of this category and increased by 3.84% y-o-y, and the average prices of “Water, electricity, gas, and other fuels” constituting 11.8% of the same category rose by an annual 10.84% over the same period.

Also, the average price of transportation grasping 13.1% of the CPI, gained an annual 5.54%, which can be attributed to the continuing recovery in the average international price of oil which attained $54.74/barrel by December 2017, up from $45.13/barrel by the end of 2016.

In their turn, the average costs of Health (7.7% of the CPI) and Education (6.6% of the CPI) respectively climbed by 0.55% and 2.75% y-o-y by Dec. 2017.

In the month of December 2017, the monthly inflation rate stood at 5.01% compared to 3.14% in Dec. 2016. The increase this year was driven by the upticks of 4.09% and 3.69% registered in the two largest CPI components “Housing and utilities” and “Food and non-alcoholic, respectively.

Average Inflation Rates by December

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Source: CAS

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