Inflation Update (January 2016): New energy prices push inflation to a 5-year high

The General Authority for Statistics (GAS) has released Consumer Price Index data for January, showing a sharp rise in prices by 4.3 percent year-on-year, accelerating from 2.3 percent during the previous month. The recent reform to energy prices meant that housing and utilities and transport were the main sources of inflation as they accelerated sharply in January, both in year-on-year and monthly terms. Our estimate of core inflation, which excludes food and rent and other housing services, but includes transport, rose to its highest level in three years.