The war in the Middle East has driven oil product prices up by more than 20 percent, with the impact spreading to service costs such as car repairs, laundry fees and airfares. According to the Ministry of Data and Statistics, the cost-of-living index rose 2.9 percent on-year in April, while personal service prices gained 3.2 percent.The cost-of-living index, based on 144 commonly purchased items, had remained relatively stable until earlier this year, but has recently accelerated toward the 3 percent range. In April, laundry fees jumped 8.9 percent, car repair costs rose 4.8 percent and domestic package tour expenses climbed 5.6 percent.The food service sector has also come under pressure as takeout container costs nearly doubled from a year earlier. Experts warn the trend could eventually lead to broader restaurant price hikes, similar to 2022, when the Russia-Ukraine war pushed the annual cost-of-living index up 5.1 percent and inflation to 6.3 percent in July.They also cautioned that monthly inflation could again approach the 3 percent level, viewed by policymakers as a psychological threshold.
don@heraldcorp.com
