Declining CPI Will Contribute to Higher Inflation

Economists warn against the decline in the consumer price index, pointing the reflection on the high inflation rate and the decline in purchasing power of consumers unable to do faced with rising commodity prices. With a low supply, which has contributed to the rise in the consumer price index, requiring a quantitative and qualitative rationalization of goods.

Economic Analyst Dr. Salim Bajajah said that the imposition of VAT has contributed to the rise in prices of goods and services compared to last year, pointing out that the rise in prices of some goods is due to high demand and lack of supply.

He pointed out that the high wages of the workforce and the high prices of electricity and fuel have had a significant impact on the rising prices of the sale of electricity. Other products and services.

For his part, economic badyst Ahmed Al-Duaij explained that the drop in consumer prices for the month of May resulted in an increase in electricity rates and an increase in bills for electricity. Electricity and the rising prices of certain foods. The weather is hard to bear due to an increase in prices and taxes, as was the case recently in the rise in electricity last month.

Al-Duaij expected a drop in consumer spending of 0.5% next year, pointing out that the imposition of taxes resulted in the rise of most raw materials , some of which exceeded the value of the tax and the greed of some traders. "The consumer price index is a statistical indicator that reflects the relative change in prices of goods and services that represent the private consumption of most consumers," he said. Adding that the need to apply rationalization of spending qualitatively and quantitatively property, and should have financial surpluses to cope with the expenses of living.

The consumer price index showed a 2.3% rise in the consumer price index in May 2017 compared to the same month of 2017. According to the latest statistics published by the General Authority of Statistics, the rise is due to price changes The groups that contributed to this increase are the group of tobaccos, which increased by 10% to 54.1% due application of the selective tax, while the rise of some goods fell for other goods and less than 8.3%.