The trends in inflation as measured by CPI and GDP deflator over the period 2001 to 2021 are presented in figure 2.
It is reflected in that the percentage change in GDP deflator fluctuates substantially as compared to CPI. According to figure 2, inflation measured by CPI hit its maximum in 2008 with a value of 9.87 percent whereas deflation was observed in 2001, 2017, and 2019.
On the other hand, the GDP deflator reflected the highest inflation in 2005 with a magnitude of 30.5 percent.
The economy suffered from deflation (negative percentage change) in GDP deflator in the years 2009, 2015, and 2020, among which the economy experienced the highest deflation of -24.21% in 2009 amid the Global Financial Crisis.
In the same vein, the economy exhibited deflation due to the Covid-19 pandemic.
As in the case of Saudi Arabia, inflation measured by the GDP deflator is relatively more volatile than that of the CPI for Qatar as well. Inflation in Qatar when measured by the GDP deflator follows a common trend with that of global oil prices.
During a period of low global oil prices such as in 2009, 2015, and recently 2020; the GDP deflator showed substantial deflation of -24 percent, -25.1 percent, and -14.8 percent whereas CPI reflected inflation of 5.1 percent, 1.2 percent, and 3.4 percent respectively.
The GDP deflator is also impacted by varying composition of GDP whereas CPI uses a fixed basket of goods and services. For instance, ‘Mining and Quarrying accounted for 34 percent of GDP in 2017 which was reduced to 29 percent in 2020.
Qatar
Saudi Arabia
United Arab Emirates